While the finer details of the agreement are awaited, the deal signals deeper trade alignment between India and the US. Given that the US is India’s largest trading partner, the agreement removes a lingering overhang and is supportive of India’s trade, currency sentiment and medium-term growth prospects. The most significant implications were for labour-intensive sectors such as textiles and leather, gems and jewellery, and agricultural products, which had been hardest hit by higher tariffs earlier. These sectors were also expected to see gains in exports and employment, building on benefits from other trade arrangements.