Will the New India–US Trade Deal Supercharge Indian Exports?
Source: Kapitales Research
Highlights:
Import duties applied to Indian goods entering the US market have been reduced from 25% to 18%.
The move followed India’s decision to discontinue buying oil from Russia.
The US Chamber of Commerce welcomed the move as a major breakthrough.
A Big Boost for Trade Relations
Elara Capital said the latest India–US trade deal could be a major positive for Indian markets after Donald Trump announced a reduction in tariffs on Indian goods. At the time of writing, reciprocal tariff rates had been lowered from 25 per cent to 18 per cent, effectively removing the additional punitive duties that had weighed on exports. Trump said the decision came after a conversation with Narendra Modi, adding that the move was made “out of friendship and respect” and would take effect immediately. Modi confirmed the deal, saying he was happy that Indian products would now be subject to reduced tariffs in the US.
Market and Expert Reactions
According to Garima Kapoor, deputy head of research at Elara Capital, the revised tariff structure brings India closer in line with global peers, many of whom face average rates near 20 per cent. She added that if Russia-related penalties are eventually removed, the effective tariff could fall even further, improving India’s competitiveness. Kapoor described the agreement as “immensely positive for every Indian asset class”, especially for export-driven sectors such as textiles, gems and jewellery, automobiles, and machinery.
US Chamber Welcomes the Move
The US Chamber of Commerce also welcomed the announcement, calling it a long-awaited step for businesses in both countries. Chamber President Suzanne Clark said the reduction in tariffs and non-tariff barriers would benefit workers and companies on both sides, and could pave the way for a broader trade agreement in the future.
What It Means Going Forward
At the time of writing, analysts believe the deal could lift investor sentiment and reduce geopolitical uncertainty that had previously weighed on Indian equities. While the immediate earnings impact on large listed firms may be limited, the wider macroeconomic effect is expected to be significant. In simple terms, the new India–US trade deal strengthens one of the world’s most important economic partnerships — and could open the door for a new phase of growth in Indian exports.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Will the New India–US Trade Deal Supercharge Indian Exports?
Highlights:
A Big Boost for Trade Relations
Elara Capital said the latest India–US trade deal could be a major positive for Indian markets after Donald Trump announced a reduction in tariffs on Indian goods. At the time of writing, reciprocal tariff rates had been lowered from 25 per cent to 18 per cent, effectively removing the additional punitive duties that had weighed on exports. Trump said the decision came after a conversation with Narendra Modi, adding that the move was made “out of friendship and respect” and would take effect immediately. Modi confirmed the deal, saying he was happy that Indian products would now be subject to reduced tariffs in the US.
Market and Expert Reactions
According to Garima Kapoor, deputy head of research at Elara Capital, the revised tariff structure brings India closer in line with global peers, many of whom face average rates near 20 per cent. She added that if Russia-related penalties are eventually removed, the effective tariff could fall even further, improving India’s competitiveness. Kapoor described the agreement as “immensely positive for every Indian asset class”, especially for export-driven sectors such as textiles, gems and jewellery, automobiles, and machinery.
US Chamber Welcomes the Move
The US Chamber of Commerce also welcomed the announcement, calling it a long-awaited step for businesses in both countries. Chamber President Suzanne Clark said the reduction in tariffs and non-tariff barriers would benefit workers and companies on both sides, and could pave the way for a broader trade agreement in the future.
What It Means Going Forward
At the time of writing, analysts believe the deal could lift investor sentiment and reduce geopolitical uncertainty that had previously weighed on Indian equities. While the immediate earnings impact on large listed firms may be limited, the wider macroeconomic effect is expected to be significant. In simple terms, the new India–US trade deal strengthens one of the world’s most important economic partnerships — and could open the door for a new phase of growth in Indian exports.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au