<h1>India-US trade deal cuts tariffs to 18%, expected to increase FDI and portfolio flows and support the rupee.</h1> The India-US trade agreement sets a reciprocal tariff of 18 per cent on Indian goods to the US, lowering barriers relative to several competitor countries and aiming to boost labour intensive exports. The tariff cut is expected to raise exports, support higher economic growth, and reverse uncertainty that reduced net FDI and portfolio inflows, with the resulting capital flows anticipated to have a positive impact on the rupee.