India’s 2026 trade deals with the US and EU slash tariffs and open global access for Indian exports. Discover the top sectors and stocks benefiting from this historic shift, including Gokaldas Exports, Adani Ports, and Mankind Pharma.
Overview: A Twin Engine for India’s Export Boom
India’s stock market is riding a powerful wave of optimism following two landmark trade agreements:
- India-US Trade Deal (Feb 3, 2026): Immediate tariff cut to 18% on Indian exports.
- India-EU Free Trade Agreement (Jan 27, 2026): Zero-duty access for over 90% of Indian goods to the 27-nation EU bloc.
Together, these deals have created a structural tailwind for export-driven sectors, triggering a re-rating of stocks with high global exposure.
🔹 Sectoral Winners & Top Stocks
| Sector | Catalyst | Top Stocks |
|---|---|---|
| Textiles & Apparel | US tariff cut (25%→18%), EU zero duty (was 12%) | Gokaldas Exports, KPR Mill, Indo Count, Welspun Living, Trident |
| Auto Ancillaries | EU duty abolition, US supply chain integration | Sona BLW, Bharat Forge, Samvardhana Motherson, Ramkrishna Forgings |
| Pharmaceuticals | Lower US taxes, EU regulatory cooperation | Mankind Pharma, Sun Pharma, Dr. Reddy’s, Marksans Pharma |
| Engineering Goods | EU export boost, US MSME access | L&T, BEL, Cummins India |
| Specialty Chemicals | EU zero duty (was 12.8%), US demand surge | SRF, Aarti Industries, Vinati Organics, Navin Fluorine |
| Seafood Exports | US duty relief, EU duty elimination | Avanti Feeds, Apex Frozen Foods |
| IT & Services | EU mobility access (144 sub-sectors), US data tax holidays | TCS, Infosys, Jio Financial, Dixon Technologies |
Sector Deep Dive: Who Gains Most?
1. Textiles: The Biggest Winner
- US is India’s largest apparel market (28% share).
- Tariff drop to 18% makes India cheaper than Vietnam (20%) and Bangladesh (20%).
- EU’s 12% duty now zero → India regains share from Pakistan and Bangladesh.
Top Stocks:
- Gokaldas Exports (+12.4%)
- Indo Count (+9.8%)
- Welspun Living (+8.7%)
2. Auto & Engineering: Supply Chain Integration
- EU FTA removes duties on car parts over 5–10 years.
- Indian component makers gain access to European OEMs.
- Luxury car imports to India become cheaper (110%→10%).
Top Stocks:
- Sona BLW (+7.2%)
- Bharat Forge (+6.9%)
- Tata Motors (JLR synergy)
3. IT & Digital Infrastructure
- EU opens 144 service sub-sectors for Indian professionals.
- US-India iCET and Budget 2026 offer tax holidays for data centers.
Top Stocks:
- Dixon Tech (+6.1%)
- Jio Financial (+8.1%)
- TCS, Infosys, HCLTech (steady gainers)
4. Agri & Consumer Exports
- EU removes duties on tea, coffee, spices, and seafood.
- US shrimp duty relief boosts aquaculture exports.
Top Stocks:
- LT Foods (+5.4%)
- Avanti Feeds (+7.9%)
⚠️ Risks to Watch
- EU Carbon Taxes (CBAM): May impact non-green exporters like JSW Steel, Hindalco.
- Agri Sensitivities: India protects dairy/poultry sectors, limiting upside for US agri firms.
- Implementation Lag: US deal is live; EU FTA fully operational by early 2027.
📝 Investment Perspective
These deals mark a structural reset for India’s global competitiveness. With tariff parity and expanded access, export-heavy sectors are poised for sustained growth.
Strategy:
- Focus on high-revenue exposure stocks in textiles, auto, pharma, and chemicals.
- Use Buy on Dips approach ahead of RBI policy (Feb 6).
- Monitor gazette notifications for EU FTA rollout timelines.
⚠️ Disclaimer: This article is for educational purposes only. Please consult a SEBI-registered advisor before making investment decisions.
