India’s recent trade breakthroughs with the US and the European Union, coupled with a calibrated fiscal roadmap in the Union Budget 2026-27, are reinforcing the country’s credit fundamentals, according to CareEdge Global Ratings (BBB+/Stable). The newly announced India-US trade pact is expected to lower US tariffs on Indian imports to 18% from a cumulative headline rate of 50%. While India’s trade dependence on the US is relatively modest, the improved tariff positioning could enhance export competitiveness and mitigate potential growth risks that were earlier pegged at 0.3–0.4% of GDP.