India, Feb. 3 -- The announcement of a trade deal with India by President Donald Trump of the United States (US) is a welcome step that will help restore some confidence in the highly consequential relationship that had become shaky over the last one year. But it also augurs for caution and realism as India plans its future approach to international economic partnerships.

In monetary terms, the lowering of American tariffs on Indian exports from the sky-high level of 50% to 18% will bring relief and buoyancy to manufacturers in US-oriented sectors of the Indian economy. It will also rev up business and market sentiments in general and give a fillip to not just trade in goods but also in services and foreign investment flows - all of whic...