India can get many benefits after the reduction in tariff.Image Credit source: ChatGPT
The day for which 140 crore people of the country were waiting. On which the eyes of not only India but the whole world were fixed. It finally happened. US President Donald Trump has reduced the US tariff to 18 percent after talking to PM Modi on Monday. India is going to get many benefits after this tariff cut. The biggest benefit in which will be increase in exports. The special thing is that recently the Finance Minister of India had made several announcements in her budget to counter the American tariffs. In which a package of Rs 10 thousand crores was also included for MSMEs to increase manufacturing. Besides, there was talk of reviving the industrial clusters of the country once again.
After the removal of this tariff, along with strengthening India’s exports, the manufacturing sector will also get a boost. For this, due to increased tariffs, there was a continuous decline in the value of rupee. Now this will also increase. Experts estimate that when the currency market opens on Tuesday, an increase of one percent or more may be seen in the rupee. This means that the rupee may strengthen from the level of 91 to 90 on Tuesday. In the coming days, it may be seen getting stronger at the level of 88 to 89.
After imposition of tariff for this, the attitude of foreign investors has been seen against India. There has been continuous selling by foreign investors in the stock market. If we talk about January only, then Rs 35,962 crore have been withdrawn. Whereas the figure of debt market has reached Rs 7,308 crore. After this announcement, once again the attitude of foreign investors can be seen towards shares.
Due to which a rise can be seen in the stock market also. However, on Monday, there was a rise of more than 1 percent i.e. about 950 points in the stock market. But after the tariff, the Indian stock market was going through a lot of ups and downs. The special thing is that after the imposition of additional Russian tariff, there has been a huge decline in the Indian stock market. The stock market is more than 5 percent below its peak. In such a situation, a bullish environment can be seen.
On the other hand, there has been a decline in FDI in the country in recent years. According to experts, FDI in the country has decreased in recent years. The American tariff filled the gap. Due to which the confidence of investors decreased. Now that the tariffs imposed by the world’s largest economy have reduced, the confidence of foreign investors in India will increase and FDI in the country will increase. This means that tariffs will be lower for India and there can be many benefits due to the possibility of a trade deal being done soon. Let us also tell you in detail what are the 5 important benefits that India can get after this announcement…
- Rupee will strengthen Ever since the tariff bomb has fallen on India. Since then, the condition of the Indian rupee has continued to deteriorate. The further decline in the rupee was seen when America imposed an additional 25 percent tariff on buying Russian oil. In the year 2025, a decline of more than 5 percent was seen in the Indian currency. In the very first month of the year 2026, the Indian rupee also touched the historic level of 92 against the dollar. Now that the announcement of reducing the tariff has been made. Now the rupee can be seen breathing a sigh of relief. According to currency market experts, the rupee may rise by more than 1 percent against the dollar on Tuesday. This means that the rupee may strengthen at the level of 90. Also, in the coming days the rupee may be seen at the level of 88 to 89. Which is a very good sign for the Indian economy.
- There will be a rise in the stock market- After the reduction in tariff, India’s stock market may also see a rise. Talking about the figures, due to tariff, double digit growth was not seen in Sensex and Nifty in the year 2025. Even though Sensex had made its peak level of 86,159.02 points on December 1, after that it has seen a continuous decline. If we look at the data, the Sensex is still more than 5 percent below its peak. Whereas on Monday, there was a rise of more than 1 percent i.e. about 950 points in Sensex. After this tariff announcement, a good rise can be seen in Sensex and Nifty. Experts estimate that in the month of February, Sensex and Nifty will not only compensate for the fall of more than 5 percent, but may also appear at the same level.
- Foreign investors will return- Due to American tariffs, there was continuous selling of foreign investors from the stock market. In the three months from November to January, foreign investors have withdrawn Rs 62,338 crore from the stock market. Whereas in the year 2025, this figure was seen to be more than Rs 1.66 lakh crore and in January 2026, foreign investors have sold Rs 35,962 from the stock market. In such a situation, after Trump’s announcement, foreign investors may be seen returning to the stock market. That too at a time when in the budget the Government of India has drastically increased the transaction security tax on investments in F&O. The reason for that too. At present, the Indian stock market has become more attractive as compared to other emerging markets of the world. In such a situation, value buying will become much easier for foreign investors.
- There will be an increase in exports- After the announcement of reduction in tariff, there may be an increase in India’s exports. Especially in the American markets which have decreased in the current financial year. Talking about the figures, India’s exports in April were 8.4 billion dollars, which came down to 6.88 billion dollars in the month of December. This means that there has been a loss. However, the data for January has not been revealed yet. There may be a decline in American export figures in January. But after the reduction in tariff, the figure may be seen increasing in the coming months. However, after the trade deal with EU, this figure may increase further. New Delhi and Washington were working on a bilateral trade agreement (BTA) since February last year, with the aim of increasing trade from the current $191 billion to $500 billion by 2030. America is India’s largest trading partner, with bilateral trade worth $131.84 billion.
- There will be a rise in FDI- Even though there has been an increase of 73 percent in FDI in the country in the year 2025, the figure has reached 47 billion dollars, but in the financial year 2021-22, this figure was seen to be more than 83 billion dollars. According to UNCTAD data, India’s FDI has seen an increase of 73 percent in 2025. Now that American tariffs have reduced and the possibilities for a trade deal between America and India have increased significantly. In such a situation, expectations regarding FDI in the country have also become quite high. After the reduction of tariffs and trade with the world’s largest economy, the confidence of foreign investors in India will increase and FDI will increase. It is possible that after the end of the new financial year, this figure may cross 100 billion dollars and there may be an increase of more than 100 percent from the current level.