U.S. President Donald Trump on Monday announced a trade pact with India that cuts U.S. tariffs on Indian goods to 18% from 50%, in return for India stopping Russian oil purchases and easing trade barriers.

According to Citi Research, investor concerns over the risk of India’s geopolitical isolation have been largely allayed following successive trade deals with the EU and the U.S.

Analysts believe the agreement with the U.S. will help remove the overhang of foreign capital outflows from Indian markets.

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