Sensex Soars 1,330 Points on Trade Deal Hopes After Trump Says India Offered to Remove All Tariffs

The Sensex jumped sharply by 1,300 points on Thursday following U.S. President Donald Trump’s statement that India had offered the United States a “zero-tariffs” trade deal. Speaking at an event in Qatar, Trump said the Indian government had proposed a deal where they would “literally charge us no tariff,” according to Bloomberg.

So far, the Indian government has not officially responded to Trump’s claim.

By 3 pm, the Nifty 50 was up 1.57% at 25,054.80, while the BSE Sensex gained 1.45%, reaching 82,506.47. These levels mark a seven-month high for India’s key stock indices, fueled by optimism over a potential trade agreement between the two countries.

“There is speculation that the trade deal will happen,” said Ambareesh Baliga, an independent market analyst, speaking to Reuters.

Trump’s remarks come during a 90-day pause on reciprocal tariffs, a period in which India and the U.S. have been negotiating to finalize a trade deal. Before this pause, Trump had imposed a 26% tariff on certain Indian goods.

India was among the first countries to engage in trade talks with the U.S. after Prime Minister Narendra Modi’s visit to the White House in February. India’s trade minister is scheduled to meet U.S. officials between May 17 and 20 to continue discussions on a bilateral trade agreement.

The comments from Trump arrived just days after India warned it might retaliate with its own tariffs in response to higher U.S. duties on steel and aluminum imports.

“An India–U.S. trade deal may be on the cards,” said Ajay Srivastava, founder of the New Delhi-based think tank Global Trade Research Institute, “but the deal must ensure strict reciprocity, with both sides eliminating tariffs equally,” he told Bloomberg.

With markets rallying and negotiations underway, hopes are high that the two economic giants will reach a fair and balanced trade agreement soon.