U.S. President Donald Trump on Monday stateside said that U.S. will cut reciprocal tariff on India to 18% from 25%.

By Jaspreet Kalra and Bharath Rajeswaran MUMBAI, Feb 3 (Reuters) - India's financial markets rallied sharply on Tuesday after a trade deal that slashed U.S. tariffs on Indian goods to 18% from 50%, a development that investors said lifts a key overhang over the country's stocks,

The US will cut tariffs on Indian goods to 18% after PM Modi agreed to stop buying Russian oil. President Trump called it a historic deal, marking a sharp reset in India-US trade ties.

U.S. Treasury yields were mostly steady on Tuesday as investors digested news that the United States and India have agreed to a trade deal.

India and the US sealed a major trade pact with Washington cutting tariffs on Indian goods to 18%, giving New Delhi a clear edge over China and key Asian export rivals. The deal marks a thaw in ties and is expected to boost Indian exports,

US President Donald Trump announced the trade deal with India on Monday, easing tensions between the world's largest democracy and its top trading partner.

The U.S. and India have finalized a trade deal on Monday after months of negotiations, steadying a relationship that had plummeted to its lowest point in decades.

Throughout the negotiations with the United States, Piyush Goyal’s messaging remained consistent. India was open to deeper trade integration but would not accept terms that harmed farmers, MSMEs, or domestic manufacturing.