The Indian rupee is poised to benefit significantly from the recently announced India-US trade deal, Chief Economic Adviser (CEA) V. Anantha Nageswaran said at the NDTV Profit Conclave 2026. The agreement, which reduces reciprocal tariffs on US and Indian goods to 18% from 50% and withdraws additional duties on Indian exports, is expected to strengthen investor confidence and boost the Indian economy.
Speaking at the conclave, Nageswaran highlighted that foreign investors had previously raised concerns over India’s “plus one” strategy, comparing it with China’s manufacturing dominance. These questions had dampened investment sentiment and slowed portfolio flows. “This barrier has now been removed. I do believe that the Indian rupee in 2026-27 will be one of the beneficiaries of this trade agreement with the US, retracing many of the losses we’ve seen,” he said.
The CEA appeared optimistic that the rupee would avoid further weakening against the US dollar. He emphasized that over the past five years, the Indian currency has not been an outlier in terms of depreciation, and the trade deal is likely to improve its stability.
Under the framework, India will eliminate or reduce tariffs on a wide range of US industrial and agricultural products, including tree nuts, wine, soybean oil, and dried distillers’ grains. In return, the US will impose an 18% tariff on select Indian goods such as textiles, leather, plastics, chemicals, home décor, and certain machinery.
Analysts say the deal could mark a turning point for India’s trade relations with the US, making the country a more attractive destination for foreign investors while strengthening the rupee. By addressing long-standing trade barriers and enhancing market access, the agreement aims to balance economic growth with strategic partnerships, bolstering confidence in India’s currency and overall economy.
