Breakthrough Indo-US Trade Pact: A Boost for India's Economy

The Indo-US bilateral trade pact announcement has dissipated economic uncertainties, promising positive outcomes for the Indian economy amidst global challenges. The agreement includes a reduction of the US reciprocal tariff on Indian goods from 25% to 18%, a breakthrough following discussions between PM Narendra Modi and President Donald Trump.

Economic Affairs Secretary Anuradha Thakur highlighted India's resilience in a rapidly changing global landscape and expressed optimism that the economy might surpass the anticipated growth rate of 6.8-7.2% by 2026-27. Thakur also emphasized the government's commitment to fiscal transparency and adherence to the budgetary projections.

Financial Services Secretary M Nagaraju affirmed that the agreement lifts significant uncertainty from the world economy, boosting confidence in India's economic trajectory. However, he acknowledged the need for accelerated credit growth in the banking sector to fully align with the vision for a developed India by 2047, suggesting forthcoming recommendations from a high-level expert committee.