Mishra said the agreement removes a key uncertainty over trade relations. He said “removal of this overhang is a very important step” and added that the symbolic impact of the deal is significant for two large economies.
He said the economy had already started adjusting to earlier tariff levels of 50%. He noted that exports between September and November 2025 grew faster than in previous years, helped by sectors such as electronics, pharma and petrochemicals that were not impacted by tariff rules.
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However, Mishra said some sectors saw a direct impact from higher tariffs earlier. He said industries like “gems and jewellery, apparel, auto components” saw visible pressure, and the tariff cut could help businesses and employees in these sectors.
He added that the agreement could help companies plan investments better. He said it allows firms to plan “non-tech FDI” more clearly by reducing uncertainty around tariffs and trade rules.
On currency impact, Mishra said the deal could support rupee stability. He said currency markets are driven by sentiment, and the agreement could help improve confidence and reduce volatility in financial markets.
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On export demand recovery, he said seasonal demand cycles may determine order flows. He said new orders could start reflecting in export data over the next few months as global retail demand cycles reset.
On services exports, Mishra said concerns about restrictions were not fully justified. He said services exports have continued to grow and policy changes in India could help foreign companies set up operations more easily.
For the full interview, watch the accompanying video
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