India-U.S. trade deal LIVE: Dalal Street soars with record rally; Rupee jumps 119 paise

Trump said he was cutting tariffs on Indian goods to 18%.

- ► KALIDAS NEWDELHI

U.S. President Donald Trump announced a trade deal with India on Monday (February 2, 2026), saying that Prime Minister Narendra Modi has promised to stop buying Russian oil over the war in Ukraine.

Mr. Trump said he was cutting tariffs on Indian goods to 18%. He had previously levied 25% reciprocal tariffs, plus an additional 25% for New Delhi's purchases of Moscow's oil.

"Delighted that Made in India products will now have a reduced tariff of 18%," said Mr. Modi thanking Mr. Trump. "When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation," said Mr. Modi in his post on X.

The Congress demanded that the Modi government should take Parliament into confidence and the text of both the EU and U.S. trade deals must be laid on the table of both Houses and debated.

Congress general secretary in-charge communications Jairam Ramesh said that from the information President Donald Trump has provided, it is abundantly clear that Prime Minister Narendra Modi has "completely surrendered".

He said that almost exactly a year ago, Prime Minister Modi landed at the White House to greet President Trump on his reelection.

Textile and leather stocks surged as much as 20% on after India and the U.S. agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18% from current 25%.

Shares of KPR Mill surged 20%, Garware Technical Fibres zoomed 20%, Welspun Living jumped 19.85%, Vardhman Textiles 19.60%, Trident jumped 19.52%, Raymond Lifestyle climbed 9.56% and Page Industries climbed 5.31% on the BSE.

The domestic equity markets opened with a historic rally on Tuesday (February 3, 2026), surging sharply in early trade, supported by upbeat global cues following the announcement of a key India-U.S. trade deal.