MUMBAI: Market expert Sunil Shah on Tuesday termed the India–US trade deal a major sentiment booster for the Indian economy and capital markets, saying it has laid a strong foundation for long-term growth and strengthened India’s position in global trade.
Reacting to the development, Shah said the agreement has had an immediate positive impact on market sentiment, which was clearly reflected in Tuesday’s sharp rally.
“After the Budget, the market was slightly weak, but today the Sensex is up by over 2, 200 points, and there is only one reason for this, the India-US trade deal, ” he told IANS.
Explaining its economic impact, Shah noted that earlier concerns over high tariffs were limited in scope. “There were no high tariffs on software and services, and pharma was not included in the 50 per cent category. Only sectors like garments, gems, jewellery and a few others were affected, and their volumes were not large enough to impact overall economic growth, ” he said, adding that the reduction of tariffs to 18 per cent is clearly positive.