Indian equity markets are riding a fresh wave of optimism after a landmark trade agreement between India and the United States reset bilateral trade dynamics. Announced earlier this week, the deal has triggered a sharp re-rating of export-oriented stocks, even as broader benchmark indices remain in consolidation mode. What is clearly emerging is an “Export Renaissance”, driven by structurally improved competitiveness for Indian manufacturers across key sectors.
At the heart of the agreement lies a decisive reduction in trade barriers. The United States has agreed to cap reciprocal tariffs on Indian goods at 18%, a sharp cut from earlier levels ranging between 25% and 50% across several categories.
This tariff rationalisation goes beyond symbolism. In return for improved market access, India is reported to have realigned parts of its energy strategy, including curbing Russian oil imports, strengthening geopolitical alignment with Washington. For Indian exporters, this shift translates into a tangible cost advantage, enabling them to compete more aggressively with global rivals such as China and Vietnam in the vast US consumer market.
The textile and apparel sector has emerged as the biggest beneficiary of the new tariff regime. With the US being a key export destination, the reduction in duties from around 25% to 18% significantly enhances pricing power and margin visibility for Indian garment exporters.
Gokaldas Exports Ltd has taken center stage, trading at ₹816.45 and surging 17.29% in the mid-day session. The stock has hit its upper circuit, clocking a cumulative rally of over 44% in just two sessions. As a pure-play exporter with deep exposure to US apparel brands, the tariff cut is seen as a direct boost to its bottom line.
Kitex Garments Ltd, the world’s second-largest infant wear manufacturer, has jumped 17% intraday. The India-EU FTA offers zero duty access in textiles and clothing, covering all tariff lines and reduces tariffs by up to 12%. It lowers duties of up to 10.5% in Indian wooden, bamboo, and handcrafted furniture.
Home textile players such as Indo Count Industries Ltd and Trident Ltd are also benefiting. Trident jumped 4.46%, with investors betting on its integrated manufacturing model to gain higher shelf space in US big-box retailers.
The Gems & Jewellery sector, known for high value but tight margins, stands to gain meaningfully from lower duty stress. The US remains the largest market for India’s cut and polished diamonds and studded jewellery exports.
Goldiam International has extended its upward momentum gaining 2.4%, reflecting a sector-wide re-rating. Heavyweights like Titan Company Ltd and Kalyan Jewellers are also witnessing sustained buying interest. Lower tariffs reduce the landed cost of jewellery in the US, potentially driving higher demand during upcoming festive and holiday seasons while improving export margins that were earlier squeezed.
As the US accelerates efforts to diversify supply chains away from China, Indian engineering exporters were already in focus. The tariff cut now acts as a force multiplier for this theme.
Bharat Forge, a global leader in metal forming, is trading in positive territory as its high-value industrial and automotive components become more cost-competitive for US OEMs. Elgi Equipments is also gaining, supported by expectations of stronger air compressor exports to North America—a region where the company has been steadily expanding its footprint.
The aquaculture and seafood sector is seeing renewed optimism. Avanti Feeds and Apex Frozen Foods are both traded higher with gains of 18% and 14%, respectively, reflecting relief across the industry. A standardised 18% tariff cap offers long-awaited stability for shrimp and seafood exporters, a sector historically affected by volatile anti-dumping duties and unpredictable tariff regimes. Improved predictability is expected to aid long-term contracts and capacity planning.
The India-US trade deal has emerged as a powerful catalyst, shifting investor focus from purely domestic consumption stories to export-led growth themes. The 18% tariff cap is a clear structural positive, enhancing the global competitiveness of “Make in India” products across textiles, engineering, jewellery, and marine exports.
While short-term volatility cannot be ruled out, the export theme appears firmly rooted as a long-term structural play. Investors are increasingly favoring companies with established US client bases, scalable capacities, and strong execution capabilities-positioning them to fully capitalise on this new phase of India-US trade relations.
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