Donald Trump said he would slash India tariffs from 50 per cent to 18 per cent after he claimed Prime Minister Narendra Modi had agreed to stop buying Russian oil — and start buying more than $500bn in American goods.

India conveyed to Washington that it had faced other hostile US administrations in the past too, and would just wait out President Trump's term.

Indian lawmakers from the ruling coalition praised Prime Minister Narendra Modi for striking a deal with the U.S. to reduce tariffs on Indian goods.

"The India-U.S. trade deal has gone through ups and downs like a roller coaster. While the devil is in the details, it removes a sword hanging over the rupee, equity and rates markets," said Nilesh Shah, managing director at Mumbai-based Kotak Mahindra Asset Management.

Prime Minister Narendra Modi and US President Donald Trump spoke for the first time this year, US envoy Sergio Gor confirmed.

Prime Minister Narendra Modi’s plan to protect India’s economy from Donald Trump’s tariffs is coming into sharper focus.