Sensex Soars 1,300 Points on Hopes of India–US Zero-Tariff Trade Deal

Indian stock markets surged sharply on Thursday after former US President Donald Trump claimed that India had offered the United States a "zero-tariffs" trade deal. The BSE Sensex jumped by 1,330 points, or 1.45%, reaching 82,506.47 by 3 PM. The Nifty 50 also rose by 1.57% to 25,054.80, marking a seven-month high for both indices.

Trump, speaking at an event in Qatar, asserted that India was ready to scrap all tariffs on US imports. "They are willing to literally charge us no tariff," he said, according to Bloomberg. However, the Indian government has not yet officially responded to the statement.

The market rally was fueled by investor optimism that a breakthrough in trade talks could be imminent. Independent market analyst Ambareesh Baliga told Reuters, “There is speculation that the trade deal will happen,” further boosting investor sentiment.

Trump’s comments come during a 90-day moratorium on reciprocal tariffs between the two countries, which was implemented to facilitate ongoing negotiations. This pause followed Trump’s earlier decision to impose a 26% tariff on Indian goods. India had responded by threatening retaliatory duties, particularly on steel and aluminum exports.

The groundwork for a potential trade agreement was laid earlier this year following Prime Minister Narendra Modi’s visit to the White House. High-level meetings are expected to continue, with India’s Trade Minister scheduled to travel to the US between May 17 and 20 for further discussions.

Experts, however, urge caution. Ajay Srivastava, founder of the Global Trade Research Institute, emphasized that any deal must be reciprocal. “Both sides must commit to eliminating tariffs equally,” he said.

While optimism has lifted markets, the actual shape of the proposed trade agreement remains to be seen. Investors are now closely watching for an official confirmation from the Indian government.