GK Ocean

📢 Join us on Telegram: @current_affairs_all_exams1 for Daily Updates!
Stay updated with the latest Current Affairs in 13 Languages - Articles, MCQs and Exams

February 04, 2026 February 04, 2026 - Current affairs for all the Exams: India and United States Finalize Landmark Trade Deal; US Slashes Tariffs to 18%

In a major diplomatic and economic breakthrough, India and the United States have finalized a bilateral trade deal following high-level discussions between Prime Minister Narendra Modi and US President Donald Trump. The agreement sees the US reducing reciprocal tariffs on Indian goods from 25% to 18%, while India has committed to increasing purchases of American energy and technology. The deal has sparked a massive rally in Indian stock markets and a significant appreciation of the Rupee.

NEW DELHI: In the last 24 hours, India’s economic and diplomatic landscape has undergone a significant shift following the announcement of a landmark India-US Trade Deal. The agreement, announced by US President Donald Trump and confirmed by Union Commerce Minister Piyush Goyal, marks the end of a tumultuous period of trade tensions that escalated in 2025.

Key Highlights of the India-US Trade Deal

  • Tariff Reductions: The United States has agreed to slash "reciprocal tariffs" on all Indian imports from 25% to 18% with immediate effect. This move is expected to benefit labour-intensive sectors such as MSMEs, textiles, engineering goods, and gems and jewellery.

  • Energy and Oil: According to White House statements, India has committed to halting the purchase of Russian crude oil and will instead increase its imports of American energy, technology, and agricultural products, potentially totaling $500 billion.

  • Protected Sectors: Commerce Minister Piyush Goyal clarified that sensitive sectors, specifically Agriculture and Dairy, have been kept out of the deal to protect the interests of Indian farmers and rural workers.

  • Market Reaction: The Indian equity markets cheered the development, with the Sensex zooming over 2,000 points and the Nifty crossing the 25,700 mark. The Indian Rupee (INR) also strengthened by over 1.2%, settling at approximately 90.4 per US Dollar.

Other Significant Developments (February 4, 2026)

1. Union Budget 2026-27: Finance Minister Nirmala Sitharaman presented the Union Budget on February 1, introducing a new fiscal consolidation framework targeting the debt-to-GDP ratio. The budget also saw a hike in the Securities Transaction Tax (STT) on futures and options trading.

2. Supreme Court Warning to Meta: A Supreme Court bench headed by CJI Surya Kant issued a stern warning to Meta and WhatsApp over their "take it or leave it" privacy policy. The Chief Justice remarked, "Exit India if you can't respect the privacy rights of consumers," signaling a toughening stance on data sovereignty.

3. Exercise KHANJAR: The 13th edition of the joint military exercise KHANJAR between India and Kyrgyzstan commenced today at Misamari in Sonitpur, Assam. The exercise focuses on urban warfare and counter-terrorism operations.

4. T20 World Cup Controversy: The Pakistan Cricket Board (PCB) has officially announced a boycott of its group-stage match against India, scheduled for February 15 in Colombo. The ICC and broadcasters have warned of legal action and financial penalties amounting to $250 million.

5. Tragic Loss: Reports have confirmed the untimely demise of Maharashtra Deputy Chief Minister Ajit Pawar in a tragic plane crash, leading to a wave of condolences across the political spectrum.

Back to All Articles