Mumbai, Feb. 3 -- The trade deal between India and the US announced last night removes the overhang of tariffs and is an extremely positive development for the domestic economy, said C S Setty, chairman of India's largest lender State Bank of India (SBI).

"This, along with the free-trade agreements India is signing, provides greater clarity for trade and therefore benefits the economy and exporters," Setty said over phone.

On 27 January, India and the European Union (EU) signed a free-trade agreement, with Prime Minister Narendra Modi saying the agreement would strengthen India's manufacturing and services sectors and boost investor confidence.

Setty said on Tuesday that following the imposition of 50% tariffs on exports from India to ...