Turnaround in sentiment, removal of uncertainty offer upsides: Economic Affairs Secretary Anuradha Thakur

4 min readNew DelhiFeb 4, 2026 08:03 AM IST

The belated forward movement over the India-US trade deal could have multiple macroeconomic implications for the country’s economy, including a broad positive rub-off effect on account of the removal of the lingering uncertainty over the deal and a rapid turnaround in market sentiment that plays a significant role in foreign portfolio investment (FPI) flows, Economic Affairs Secretary Anuradha Thakur said.

When asked about the broader macroeconomic impact of the trade deal with the US, Thakur said: “There are 2-3 things I’ll say… one is that it’s definitely a positive development. This big uncertainty that was going around, has changed, there is certainty. Did that (US tariffs) impact the numbers hugely? No. We did not see the US-India trade suddenly reach a cliff and fall, for whatever reasons, whether there was front loading (of shipments from India) or (sectoral) exemptions, it has not fallen. To that extent, the first part — removal of uncertainty — is a great development,” Thakur told The Indian Express.

The second part pertaining to how much of an impact the trade deal will have is not known, she said. “Therefore, for the impact, we will have to really see and wait for the details of what will come once Commerce (and Industry Ministry) shares the details with us,” Thakur said.

“And the last part on that — about market sentiment…sentiment plays such a big role in FPI flows at least, and that has changed in the morning today (Tuesday). So, to that extent, it does help. Suddenly there will be a positive sentiment, we’ve seen it in the past, we’ll see it again… sentiments move very fast and impact…,” she added.

When asked if the general impression of India changes, not just in the context of stock markets or FPI flows, Thakur said that the impression has changed over time but “it was not that it was a negative impression”, which is reflected in the continuing robustness in foreign direct investment (FDI) flows into India, even as the FPI flows have been volatile.

“When I talk to businesses, I realise whether it is four big deals or 50 small deals, they are putting their hard-earned money. They (investors) are actually betting on our country. So I will not say that suddenly the impression of India will change. I think the impression of India, of course, has changed over time as we can see. But it is not that it was a negative impression, (then) nobody would have put in their money. We are a big market. And, now, we are also a home for talent, where the global capability centres are coming… they are willing to put in their money because there’s obviously something in it for them,” she said.

On the concerns regarding the capital outflows, she said FDI inflows have been firm. “That (capital outflows) should have shown up in our FDI then, they work differently. They (FDI and FPI) worked pretty differently last year… they (FDI investors) are actually believing in the country’s macroeconomic fundamentals if they are locking in equity in companies,” she added.

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This comes in the backdrop of a slowdown in capital inflows and a general sense of unease over increasing outflows. The Economic Survey 2025-26 had flagged capital outflows and the uncertainties on the external front as looming risk factors for India’s growth.

The US announced removal of punitive tariffs on India late Monday, bringing down the headline tariff number to 18% from 50%. Following this, the stock markets gained sharply on Tuesday, and foreign investors returned to the market, snapping up Indian equities worth Rs 5,236.28 crore, the highest in a little over three months.

Aanchal Magazine is a Deputy Associate Editor with The Indian Express, serving as a leading voice on the macroeconomy and fiscal policy. With 15 years of newsroom experience, she is recognized for her ability to decode complex economic data and government policy for a wider audience.
Expertise & Focus Areas: Magazine’s reporting is rooted in “fiscal arithmetic” and economic science. Her work provides critical insights into the financial health of the nation, focusing on:

Macroeconomic Policy: Detailed tracking of GDP growth, inflation trends, and central bank policy actions.

Fiscal Metrics: Analysis of taxation, revenue collection, and government spending.

Labour & Society: Reporting on labour trends and the intersection of economic policy with employment.

Her expertise lies in interpreting high-frequency economic indicators to explain the broader trajectory of the Indian economy.
Personal Interests: Beyond the world of finance and statistics, Aanchal maintains a deep personal interest in the history of her homeland, Kashmir. In her spare time, she reads extensively about the region’s culture and traditions and works to map the complex journeys of displacement associated with it.
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Anil Sasi is the National Business Editor at The Indian Express, where he steers the newspaper’s coverage of the Indian economy, corporate affairs, and financial policy. As a senior editor, he plays a pivotal role in shaping the narrative around India’s business landscape.
Professional Experience Sasi brings extensive experience from some of India’s most respected financial dailies. Prior to his leadership role at The Indian Express, he worked with:

The Hindu Business Line

Business Standard

His career trajectory across these premier publications demonstrates a consistent track record of rigorous financial reporting and editorial oversight.
Expertise & Focus With a deep understanding of market dynamics and policy interventions, Sasi writes authoritatively on:

Macroeconomics: Analysis of fiscal policy, budgets, and economic trends.

Corporate Affairs: In-depth coverage of India’s major industries and corporate governance.

Business Policy: The intersection of government regulation and private enterprise.

Education Anil Sasi is an alumnus of the prestigious Delhi University, providing a strong academic foundation to his journalistic work.
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