Saturday, March 07
So far in 2026, foreign portfolio investors (FPIs) have net sold stocks worth nearly Rs 35,000 crore in the Indian market. This comes on top of the Rs 1.7 lakh crore worth of stocks net offloaded in 2025. The sell-off, in turn, put pressure on the rupee. Despite strong central govt intervention, the rupee had depreciated over 6% since the start of 2025.
Within this landscape, Tata Steel’s Indian operations do not export to the US, though its UK unit does. In contrast, JSW Steel, with facilities in Ohio and Texas, produces steel locally, shielding it from import tariffs. Hindalco exports negligible aluminium and no copper from India to the US due to strong domestic demand.
Seafood Exporters Association of India (SEAI) said it expects shipments to rebound following the conclusion of the India-US trade deal and the reduction of tariffs to 18%. “We are confident that with the conclusion of the trade deal and lowering of tariffs to 18%, the quantum of export of seafood from India to the US will show an increase and soon reach back to the previous levels,” the association said. SEAI also welcomed the role played by govt in finalising the agreement.
Textile and apparel exporters are now expecting an increased sourcing by global brands as India will now enjoy one of the lowest tariff regimes among major Asian manufacturing hubs, with a marginal advantage over competitors, such as Bangladesh, Sri Lanka, Vietnam and China. The tariff relief is expected to create a level-playing field, particularly for small and medium exporters in clusters such as Surat, Gurugram and Tirupur.
The rupee jumped 124 paise to 90.27 against the dollar, its strongest single-day gain in seven years and the best since late 2018. The currency had closed at 91.51 in the previous session and has strengthened 165 paise over two days. The rebound followed a recent record low of 91.99, when corporate dollar hedging and concerns over capital outflows had weighed on the currency.
The Aug decision by US President Donald Trump to impose stiff tariffs on India for purchasing Russian oil had stunned policymakers and exporters. Financial markets turned choppy and triggered unease about the trajectory of growth. But the economy remained resilient and growth momentum robust as it navigated the turbulent period.
The RBI cut rates in Dec after the MPC placed greater weight on inflation slipping below the lower bound of the flexible inflation targeting framework. With inflation now expected to move higher, including under the new base-year series to be released from Feb 12, economists see limited scope for further easing. Growth is also expected to slow and settle in the 6.7-7% range in FY27, close to the Economic Survey’s estimate of potential growth at 7%.
Arvind Shrivastava, secretary, department of revenue, said the deal would deepen trade ties between 2 of the world’s largest economies. He said it would create fresh opportunities for India’s labour-intensive and manufacturing sectors in the US market, while also giving a push to collaboration in high and advanced technology areas and “give impetus to mutually beneficial collaboration in high and advanced technology sectors”, he said.
After Trump and Modi went public, officials have been engaged on the next steps. Commerce and industry minister Piyush Goyal said on Tuesday that a joint statement will be released shortly. Officials indicated that it should be ready in a few days, and will be followed by the vetting of the agreement before it is signed.
