India's equity benchmarks are likely to open higher on Wednesday following U.S. President Donald Trump's remark that the world's largest economy could reach a trade deal with India. U.S. Treasury Secretary Scott Bessent has indicated that both nations are nearing an agreement that would help India avoid sharp tariff increases.

President Donald Trump says Japan is unlikely to secure a trade deal with the U.S. and threatened an increase in tariffs against the country, making it the latest to face an escalation in tensions as the July 9 deadline for negotiations nears.

Speaking aboard Air Force One, Trump suggested that India could be close to making concessions on market access for American firms, potentially clearing the way for a reduced tariff framework.