India-US trade deal, Feb. 3 -- Chief Economic Advisor V Anantha Nageswaran feels that the lowering of the reciprocal tariff to 18% by United States President Donald Trump removes "the biggest stumbling block" for foreign capital inflows into the country, as per an Indian Express report on Tuesday.

"This undoubtedly changes the picture on capital flows. This was the biggest stumbling block for capital flows. This makes a huge, huge difference," Nageswaran told the paper.

Noting that the reduced tariff rate will "remove all uncertainty", Nageswaran also said that this allows India to bring the "China + 1 strategy back in the game".

He said, "The tariff rate removes a huge uncertainty from the minds of both direct and portfolio investors....