New Delhi, Feb 3 || The India-US trade deal should help narrow the current account deficit, stabilise the rupee, and reduce India’s vulnerability to global shocks over time, a report showed on Tuesday.
The US has decided to reduce the reciprocal tariff on Indian goods to 18 per cent from the earlier 50 per cent.
The trade deal is structurally positive for India’s medium-term growth and external stability. Improved market access and tariff certainty are likely to boost exports, support manufacturing investment, and strengthen inflows of foreign direct investment (FDI), Axis Securities said in its report.
It is particularly positive for export-oriented sectors with meaningful exposure to the US market. Sectors such as textiles, chemicals, pharmaceuticals, auto ancillaries, IT services and select industrials stand to benefit from improved market access, tariff rationalisation and greater supply-chain certainty.
Over time, higher order inflows, better capacity utilisation and improved earnings visibility could support sustained growth and valuation re-rating for these sectors, said the report.