US President Donald Trump has confirmed that a with India could be reached soon. Currently, India’s exports to the US are subject to a 25% tariff and a 25% penalty, resulting in a total 50% tariff. This figure will drop to around 15% after the trade deal.
Annual trade between India and the US is approximately $125 billion. Of this, imports from the US are $40 billion, while Indian exports to the US are $80 to $85 billion. This means that the US currently faces a trade deficit with India. To compensate for this deficit, President Trump imposed tariffs on countries worldwide, including India.
Following the announcement of the deal, in several sectors began to surge by 5 to 15%. Textile stocks will benefit the most, as India accounts for 40% of total textile imports to the US. Upon completion of the trade deal, Indian textile companies such as Gokaldas Exports, KPR Mill, Welspun Living, Arvind, and Trident will benefit significantly.
The second biggest beneficiary of the deal will be auto parts export companies, whose stocks are currently on the rise. Bharat Forge’s stock is seeing a 5% increase, while stocks of companies like Motherson Sumi, Sona Comstar, and Sundram Fasteners are also expected to rise.
The gems and jewellery sector also exports significantly to the US and will benefit from the trade deal. This boost will positively impact the stocks of companies exporting gems and jewellery to the US. Experts believe investors should pay special attention to the shares of companies like Titan, Kalyan Jewellers, and Rajesh Exports.
Seafood and shrimp are the largest exports from India to the United States. Data shows that India accounts for 50 to 60 percent of America’s total seafood and shrimp imports. The tariff reduction will significantly benefit Indian seafood and shrimp exporters, and the stocks of companies involved in this export are expected to see a significant surge. Companies such as Avanti Feeds, Apex Frozen, and Waterbase may see their stocks rise.
This trade deal will benefit not only Indian exporting companies but also importing companies. Companies in India’s energy and oil sectors have increased imports from the United States, which will also benefit these companies’ stocks. Indian energy sector companies such as Reliance, ONGC, and other oil companies will also benefit from this import, potentially leading to a rise in their shares.
India also exports large quantities of steel and aluminium to the United States. Reducing tariffs on these sectors will boost exports, potentially leading to a surge in the shares of related companies. If this happens, the shares of companies like Tata Steel and JSW Steel are also likely to rise further.
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