The United States and India have reached a trade agreement that lowers U.S. tariffs on Indian goods from 25% to 18%. This news comes barely a week after India signed a free trade pact with the European Union, a move EU Commission President Ursula von der Leyen described as "the mother of all deals."

Market analysts expect the manufacturing, pharmaceutical, and information technology sectors to gain the most from this shift. James Thom of Aberdeen Investments specifically highlighted labor-heavy exports such as textiles, clothing, leather, jewelry, toys, and furniture. He also noted that the deal will help small and medium-sized businesses, banks, private lenders, and companies focused on overseas markets.

Bernstein analysts Venugopal Garre and Nikhil Arela suggested that the EU treaty likely pushed the U.S. to speed up its own negotiations. They added that strengthening the relationship between the U.S. and India will be a major boost for the I.T. industry.