The U.S. and India have finalized a trade deal on Monday after months of negotiations, steadying a relationship that had plummeted to its lowest point in decades.

Officials and business leaders welcomed lower tariffs, but India has not yet confirmed that it would stop buying Russian oil, which President Trump said Prime Minister Narendra Modi had agreed to.

By Jaspreet Kalra, Ankur Banerjee and Karin Strohecker MUMBAI/SINGAPORE/LONDON, Feb 4 (Reuters) - The U.S.-India trade deal has blown away clouds over the unloved Indian rupee and is probably enough to pause relentless foreign selling in stocks,

Analysts said back-to-back trade deals with the U.S. and EU could lift pharma, manufacturing and IT stocks.

India will reduce tariffs on many U.S. industrial and agricultural goods to zero, marking a significant trade deal win.

US President Donald Trump announced a trade deal between India and the United States on Monday, adding that the US reciprocal tariffs on India would be slashed to 18 per cent.

Indian lawmakers from the ruling coalition praised Prime Minister Narendra Modi for striking a deal with the U.S. to reduce tariffs on Indian goods.

The sharp tariff rollback offers India a stronger footing against several emerging market competitors in the US, but former envoy Meera Shankar cautions that the real gains will depend on how quickly India tackles domestic cost and logistics hurdles to convert the lower duty into sustained export momentum.