Which sectors will benefit from the US-India trade deal?
New Delhi. India's export-oriented sector is expected to benefit in a big way after the long-pending trade deal between India and the US is finalized on February 2. Under this agreement, America has reduced the Reciprocal Tariffs on Indian goods from 25 percent to 18 percent. Announcing this deal, US President Donald Trump said that it will come into effect immediately, due to which Indian exporters will soon get relief in tariffs.
After talking to President Trump, Prime Minister Narendra Modi said, "It was a pleasure to talk to my dear friend President Trump today. Glad that 18% tariff will now be imposed on Made in India products. On behalf of the 1.4 billion people of India, many thanks to President Trump for this wonderful announcement." Let us know which sectors will benefit more from this deal.
Indian companies will benefit
After the heavy tariffs came into effect from August 27, 2025, it had reached 50 percent for some sectors. This harmed Indian competitiveness and affected the demand for Indian goods in the US, which is India's largest export market. Now that the tariff burden has reduced, companies that have a large business in the US are expected to get relief in margins, better competitiveness and better orders.
Which sectors will be positively impacted?
According to market participants, the tariff cut is a major positive step for several export-heavy sectors including textiles and clothing, seafood, auto parts, engineering goods, chemicals, gems and jewellery, and some consumer exporters.
Textiles and clothing are considered to be the biggest beneficiaries of this deal. America accounts for about 28% of India's total textile exports. More than half of India's textile and clothing imports are also linked to American cotton. Companies that have more business in the US are likely to have faster volume recovery and better pricing power. Stocks that have a major share in US revenues include Indo Count Industries (70%), Kitex (70%), Gokaldas Exports (67%), Pearl Global (64%), Welspun India (61%), Himatsingka Said (60%), Trident (28%), Vardhman Textiles (25%), SP Apparels (22%), Arvind (14%) and KPR Mills (9%).
In chemicals, especially specialty chemicals and intermediates, exports are controlled by long-term contracts and strict compliance regulations. Although demand is less sensitive to short-term price fluctuations, tariffs directly impact net realisations. Key beneficiaries of the deal include UPL (20-25% US exposure), SRF (20%) and Jubilant Ingravia (9%). Other likely gainers include Aarti Industries, PI Industries, Atul, Naveen Fluorine International, Deepak Nitrite, Vinati Organics, Alkyl Amines Chemicals and Gujarat Fluorochemicals.
Engineering exporters are also expected to benefit. Engineering goods form the largest share of India's merchandise exports to the US, which include industrial machinery, electrical equipment and capital goods. Stocks that are significantly traded in the US include Sona BLW (40%), Ramakrishna Forging (27%), Bharat Forge (25%), Samvardhana Motherson (18%), Balkrishna Tires (18%), Sansera Engineering (9%) and Apollo Tires (3%).
Gems and jewelery exports, including cut and polished diamonds and gold jewellery, are high-value. But there is a lot of competition in it. The tariffs have a direct impact on retail pricing and inventory costs for US wholesalers and retailers. Reduction from 25% to 18% reduces landed cost, which will reduce margin pressure on Indian exporters.
Some consumer exporters are also expected to benefit gradually. LT Foods gets 39% of its revenue from the US. Tata Consumer Products earns 12% and KRBL earns 10% from there. The IT sector will indirectly benefit from the improved environment and stronger bilateral relations.
The seafood sector is also expected to be profitable. Lower tariffs are expected to reduce landing costs, which will help in demand recovery and improve earnings visibility. Among listed companies, Apex Frozen Foods gets 63% of its earnings from the US, followed by Waterbase at 40% and Avanti Feeds at 14%.
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