The announcement of a trade deal between India and the US marks the conclusion of a turbulent phase that tested the bilateral relationship across trade, defence and geopolitics. The reported reduction of reciprocal tariffs on Indian goods from 50 per cent to 18 per cent, coupled with the possibility of lifting the 25 per cent punitive tariffs imposed over India’s purchase of Russian oil, could place India among the least-tariffed economies in the Indo-Pacific. Coming soon after the conclusion of the India-EU Free Trade Agreement, the deal underscores India’s strategy of holding firm in negotiations while diversifying its trade partnerships.

M Jeyaram

Sholavandan, TN

Hiking FDI in PSBs

This refers to ‘Govt mulls raising FDI in public sector banks to 49%’ (February 3). In her exclusive interview to businessline, the Finance Minister categorically mentioned that the Budget speech didn’t cover anything on divestments or mergers in banking, pending receipt of report from a select committee appointed for the purpose. No doubt, increasing foreign investments in PSBs may bring the required transparency, efficiency. However, it may derail large-scale implementation of social and welfare programmes meant for the small borrower community, with inadequate support from private sector banks so far on this front.

Sitaram Popuri

Bengaluru

Simplify tax ecosystem

Several citizens are likely disappointed at not getting any further direct tax breaks. However, it is good that the Budget has avoided frequent tinkering of tax slabs and rates. But has an opportunity been lost? In the interests of a Viksit Bharat, a move towards greater simplicity is needed. All income must be treated the same — salaries, interest, capital gains, and others. And the total must be taxed at a single rate of say 12 per cent, without slabs. Maybe only the first ₹5 lakh of all income could be tax-free. ITR form must contain just one side of an A4 sheet rather than the 30+ pages of ITR 2 presently.

V Vijaykumar

Pune

STT hike welcome

Apropos the editorial ‘Better options ahead’ (February 3), the decision to increase the Securities Transaction Tax (STT) on derivatives is a necessary, albeit bitter, pill for the markets. While the initial volatility reflects investor discomfort, the long-term goal of curbing excessive speculation among retail traders is sound. High-frequency trading in the F&O segment often leads to significant capital erosion for small investors who lack the institutional tools to manage such risks. To ensure these measures are effective, the government should consider reinvesting a portion of the increased STT revenue into robust investor education programmes.

M Barathi

Bengaluru

Published on February 3, 2026