India and US have finally signed the trade deal, with US slashing the reciprocal tariffs to 18% from the earlier 25%. The trade deal will be “effective immediately”, Trump said, signalling immediate tariff relief for India.
With the tariff burden now lower, companies with significant exposure to the US are expected to see relief in margins, improved competitiveness, and better order visibility. Among Indian exporters, sectors such as textiles, seafood, auto ancillaries, chemicals, and select consumer companies are likely to be the key beneficiaries.
The easing of US trade tariffs is emerging as a meaningful positive for several export-oriented Indian sectors. Earlier, steep tariffs of up to 50% had come into effect from August 27, creating cost pressures and dampening demand for Indian goods in the US market. With the tariff burden now lower, companies with significant exposure to the US are expected to see relief in margins, improved competitiveness, and better order visibility.
Among Indian exporters, sectors such as textiles, seafood, auto ancillaries, chemicals, and select consumer companies are likely to be the key beneficiaries.
Textiles and Apparels: Welspun India, Trident Others In Focus
After a spell of suffering, India’s trade deal with US will bring long-sought relief to the textiles and apparel sector. The sector will be the highest beneficiary for the landmark pact as US accounts for nearly 28% of India’s total textile exports, making it the single largest destination for Indian textile manufacturers. Additionally, more than half of India’s textile and apparel imports are linked to US cotton, highlighting the deep trade integration between the two countries.
Textile & Garment Stocks With High US Exposure:
- Indo Count Industries – 70%
- Kitex – 70%
- Gokaldas Exports – 67%
- Pearl Global – 64%
- Welspun India – 61%
- Himatsingka Seide – 60%
- Trident – 28%
- Vardhman Textiles – 25%
- SP Apparels – 22%
- Arvind – 14%
- KPR Mills – 9%
Companies with higher US revenue exposure are likely to see faster volume recovery and better pricing power as tariff pressures ease.
ALSO READ: India, US ‘Agreed’ To Trade Deal; Reciprocal Tariffs Slashed To 18%: Trump After Modi Phone Call
Seafood Sector: Avanti Feeds, Apex Frozen Foods In Focus
The seafood sector is another area that could benefit meaningfully. The US remains a critical export market for Indian seafood companies, particularly for shrimp and frozen food products.
Seafood Stocks with US Revenue Exposure
- Avanti Feeds – 14%
- Apec Frozen Foods – 63%
- Waterbase – 40%
Companies with a higher dependence on the US market could see a sharper improvement in earnings visibility.
Auto and Auto Ancillaries: Sona BLW, Tata Motors, Bharat Forge In Focus
Auto component makers with a strong presence in the US market are also expected to benefit. Lower tariffs can help sustain order inflows from global OEMs, improve margins, and strengthen India’s position as a cost-efficient manufacturing hub.
Auto & Auto Ancillary Stocks with High US Exposure:
- Sona BLW – 40%
- Ramkrishna Forging – 27%
- Bharat Forge – 25%
- Tata Motors – 23%
- Samvardhana Motherson – 18%
- Balkrishna Tyres – 18%
- Sanmar/ Sansera Engineering – 9%
- Apollo Tyres – 3%
Chemicals: UPL, SRF In Focus
The chemicals sector, especially specialty and agrochemical players, stands to gain from lower tariffs through improved export competitiveness and margin expansion. The US is a key end-market for several Indian chemical manufacturers.
Chemical Stocks with Notable US Exposure
- UPL – 20–25%
- SRF – 20%
- Jubilant Ingrevia – 9%
In addition, other chemical players that could benefit include Aarti Industries, PI Industries, Atul, Navin Fluorine International, Deepak Nitrite, Vinati Organics, Alkyl Amines Chemicals, and Gujarat Fluorochemicals.
Consumer Companies: LT Foods, KRBL In Focus
Select consumer companies with exposure to the US market may also see incremental gains, particularly those exporting packaged food and rice products.
Consumer Stocks with US Revenue Exposure:
- LT Foods – 39%
- KRBL – 10%
- Tata Consumer Products – 12%
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