India's benchmark indexes are set to open higher on Wednesday, after logging their worst day in a month in the previous session, but gains will likely be limited as investors await U.S. President Donald Trump's latest round of tariffs.

US President Donald Trump said Tuesday that India was willing to cut tariffs, hinting at possible relief for India from sweeping US tariffs.

India’s prime minister hosts Chilean president in capital Delhi, leaders highlight deepening ties across trade, technology, and climate - Anadolu Ajansı

The US report criticizes India's drug price controls on medical devices like stents and knee implants, citing concerns over inflation adjustments and tech innovations, impacting US companies' market participation.

Indian and U.S. officials discussed trade issues including the reduction of tariffs and easing of non-tariff barriers, making progress towards a bilateral trade agreement during several days of talks in New Delhi,

The US criticizes India’s trade practices, highlighting high tariffs, import restrictions, and policies like Make-in-India. The USTR report warns of potential reciprocal tariffs as tensions rise.

"In a way, Trump is holding up a mirror to us. We've done little to invest in agriculture's productive capacity," says Mr Dhar. "For now, buying time is the best strategy - maybe offering the US cheaper imports of industrial goods as a trade-off."

Foreign holdings of Indian government bonds that allow unfettered investment have risen to more than 3 trillion rupees ($35 billion) for the first time as investors stepped up purchases ahead of an anticipated interest rate cut in April.

India's current account deficit (CAD) rose to USD 11.5 billion in the December quarter, attributed to a higher trade deficit. Despite moderation from USD 16.7 billion in the previous quarter, merchandise trade deficits and foreign direct investment outflows were notable contributors,