India-US Trade Deal: These Stocks and Sectors are Set to Reap Benefits from Reduced Tariffs

After months of deliberations, India and the US have finally sealed a trade agreement, bringing the overall tariff rate down sharply to 18% from the earlier 50%. This development is expected to put export-focused stocks firmly in focus during Tuesday’s trading session. The deal announcement was confirmed by US President Donald Trump in a tweet on X. In this read, we will explore the key beneficiaries of trade deal.

Textile Stocks

Textile exporters such as Gokaldas Exports, Welspun Living and KPR Mill were among the hardest hit earlier, given that 50–70% of their revenues are derived from the US market. The steep cut in tariffs to 18% significantly improves their competitiveness, especially against peers in Bangladesh and Vietnam, which continue to face tariffs of around 20%.

Shrimp Exporters

The US remains the largest market for Indian shrimp exporters. While companies have diversified exports toward regions like the European Union and China, the US continues to be the primary destination. Stocks such as Avanti Feeds and Apex Frozen Foods are likely to emerge as direct beneficiaries of the revised tariff structure.

IT Stocks

Although IT services were not directly subject to tariffs, the sector saw volatility due to uncertainties around H-1B visa negotiations and sharp currency movements. The rupee’s depreciation supported margins, driving stock gains amid trade-related ambiguity. 

With the rupee expected to strengthen following the announcement, market participants will closely track how stocks like TCS, Infosys, HCLTech, Persistent Systems and Coforge react in the near term.

Also Read: Maruti Suzuki Signals Continued Production Limits Amid Strong Export Growth

Bharat Forge

Bharat Forge is set to reap benefits from the reduced tariffs as the company has meaningful exposure to the US Class 8 truck segment. Beyond commercial vehicles, the company’s defence business also remains in focus, with expectations that the ongoing India–US defence partnership could translate into incremental export orders.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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