India’s Export Engine Gets a Historic Boost: The “Mother” and “Father” of All Trade Deals

These deals dismantle long-standing tariff barriers, offering Indian businesses a structural advantage and presenting a compelling opportunity for investors in export-driven sectors.

The “Mother of All Deals”: India-EU FTA

Concluded on January 27, 2026, after nearly two decades of negotiations, the India-EU FTA is a transformative milestone. The European Union has agreed to eliminate duties on 99.5% of Indian exports by value. This means that Indian goods, which previously faced tariffs ranging from 10% to 26%, notably textiles and seafood, can now enter Europe duty-free.

For India, this levels the competitive landscape against rivals such as Bangladesh and Vietnam, who had long enjoyed preferential access to the EU market. Exporters of textiles, apparel, seafood, chemicals, and leather products now have a significant opportunity to expand market share, increase volumes, and improve profitability.

The “Father of All Deals”: India-US Trade Agreement

Announced on February 2, 2026, the India-US trade agreement marks a dramatic reversal of trade tensions between the two countries. The US has reduced effective tariffs on Indian goods from highs of around 50%, including punitive tariffs, to 18%. While not a full zero-duty FTA, this steep reduction significantly enhances the competitiveness of Indian exporters in sectors such as auto ancillaries, gems and jewellery, and specialty chemicals.

By lowering trade friction, the US deal positions India as a “China+1” partner in the global supply chain, attracting orders from American manufacturers seeking alternatives to China while maintaining quality and reliability.

Who will be the Top Beneficiaries of India’s Landmark Trade Agreements?

Textiles & Apparel - The Double Benefit Sector

The double benefit: Zero duty in EU (was 10-12%) + Reduced tariffs in US.

Textiles are the highest employment generator and historically the most tariff-sensitive sector. The EU deal alone could boost apparel exports by 20-25% in the next three years.

• Gokaldas Exports: Pure-play apparel exporter. With Europe opening up, their order book visibility extends significantly.
• Welspun Living & Indo Count Industries: Dominant in home textiles (sheets/towels). US tariff cuts directly improve their margins against Chinese rivals.
• KPR Mills & Vardhman Textiles: Integrated players who benefit from the entire value chain, from yarn to garment, are likely to see higher volumes.
• Trident & Arvind: Diversified players with a strong footing in the EU market who may see immediate margin expansion.

Auto & Auto Ancillaries - The US Opportunity

The US Play: Tariffs slashed on components makes India the preferred "China+1" partner.

Global OEMs are increasingly looking to India for precision components. The US tariff cut from 50% to 18% is a massive catalyst for order inflows.

• Bharat Forge: A global leader in forging. High exposure to US heavy trucks and industrial sectors makes this a primary beneficiary.
• Samvardhan Motherson International: With a massive global footprint, lower friction in US-India trade boosts its integrated wiring harness and mirror businesses.
• Sona BLW: A play on the global EV transition. Lower tariffs help them aggressively target US EV makers.
• Balkrishna Industries: Agricultural and off-highway tires. The US is a key market, and tariff relief directly aids competitiveness.
• Sundaram Fasteners & JK Tyres: Strong components that will see renewed export demand.

Seafood & Shrimp - Europe Opens the Door

The EU Play: Tariffs slashed from 26% to 0%.

Indian shrimp exports faced a steep 26% handicap in Europe compared to zero-duty nations. That wall has fallen.

• Avanti Feeds & Apex Frozen Food: Market leaders in shrimp processing. The EU market opening effectively creates a massive new geography for growth beyond the US.
• Coastal Corp & Waterbase: specialized players that will benefit from the surge in demand for value-added marine products in Europe.

Gems & Jewellery: Regaining Sparkle

The US Play: Relief from high legacy tariffs.

This liquidity-driven sector was hit hard by US tariffs. The reduction to 18% revives the arbitrage for Indian cut & polished diamonds.

• Rajesh Exports & Vaibhav Global: Large-scale exporters who operate on thin margins; tariff cuts fall directly to the bottom line.
• Sky Gold & Goldiam International: Focused players in studded gold jewellery who can now competitively price their intricate designs in New York and California.

Chemicals: The Specialty Edge Strengthens

The EU Play: Zero duty on 97.5% of chemical products.

Europe is a major consumer of Indian specialty chemicals and agrochemicals.

• SRF & Navin Fluorine: Leaders in fluorine chemistry. The deal cements their position as preferred suppliers for European pharma and refrigerant giants.
• PI Industries: Agrochemical custom synthesis (CSM) model gets a boost as European innovators outsource more manufacturing to India.
• Aarti Industries, Vinati Organics, Gujarat Fluorochemicals: Key suppliers of intermediates who will see volume growth as European plants shut down due to high local energy costs.

Leather & Leather Products: Foot in the Door

The EU Play: Level playing field with Vietnam.

• Mirza International (Red Tape) & Superhouse: Major exporters of leather footwear. Zero duty allows them to competitively price leather shoes in fashion capitals like Milan and Paris.
• Mayur Uniquoters: Synthetic leather player supplying to global auto OEMs (like Mercedes/BMW).
• Bhartiya International: A leading fashion house for leather garments that can significantly ramp up EU volumes.

Conclusion - A Structural Bull Run for Indian Exports

The convergence of the "Mother" and "Father" deals creates a rare structural bull run for Indian exports. The specific stocks listed above are not just speculative plays; they are businesses with established global supply chains that have just been handed a massive competitive advantage by government policy.