Devil in the details: Key issues still pending in India-US negotiations? Inside the real trade story

After nearly a year of pressure, public ultimatums, and private recalibration, India and the United States have finally announced a trade deal with Washington cutting tariffs on Indian goods from 50% to 18%. Donald Trump calls Narendra Modi one of his “greatest friends.” Modi responds with thanks. But behind the smiles, the story is far more complicated. This explainer breaks down what we know and what remains unresolved. Reuters reports India will ramp up purchases of U.S. petroleum, defence equipment, electronics, aircraft, pharmaceuticals and telecom products, spread over several years. Trump claims India will cut tariffs to zero and stop buying Russian oil. New Delhi, notably, has not confirmed either in those terms. So what’s really happening? Indian refiners have already been quietly reducing Russian oil imports while diversifying toward the U.S., Middle East, Africa and South America. Exporters see a major boost from lower tariffs, especially in textiles, garments, jewellery, chemicals and seafood. But agriculture remains politically sensitive and steel, aluminium and auto-related tariffs are likely here to stay. Markets have reacted positively. The rupee has strengthened. Stocks have jumped. But as analysts warn, this deal isn’t finished yet.