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.
Trade Deal Model Portfolio: Sector-Wise Allocation
| Stock | Sector | Entry Range (₹) | Target Price (₹) | Rationale |
|---|---|---|---|---|
| Gokaldas Exports | Textiles & Apparel | 740–770 | 920–950 | 67% US revenue, EU zero-duty access |
| Indo Count | Textiles & Apparel | 410–430 | 520–550 | 70% US revenue, strong EU demand |
| Sona BLW | Auto Ancillaries | 620–640 | 740–780 | 40% US/EU exposure, EV components |
| Bharat Forge | Auto & Engineering | 1,050–1,080 | 1,250–1,300 | US/EU OEM integration, defense tailwinds |
| Mankind Pharma | Pharmaceuticals | 2,050–2,100 | 2,400–2,500 | US tax relief, strong Q3 earnings |
| Aarti Industries | Specialty Chemicals | 620–650 | 740–780 | EU zero-duty, US specialty demand |
| Avanti Feeds | Seafood Exports | 420–440 | 520–550 | US shrimp duty cut, EU access |
| Dixon Technologies | IT & EMS | 6,200–6,400 | 7,200–7,500 | US data center tax breaks, EU mobility |
| Jio Financial | Digital Infrastructure | 240–260 | 310–330 | US tech ecosystem, fintech expansion |
| LT Foods | Agri & Consumer Exports | 160–175 | 210–225 | 39% US/EU revenue, packaged food exports |
🧠 Allocation Strategy
- Textiles & Apparel (20%): High labor intensity + tariff relief = strong margin expansion.
- Auto & Engineering (20%): Long-term EU supply chain integration.
- Pharma & Chemicals (20%): Regulatory easing + export boost.
- Digital & IT (20%): Services liberalization + infrastructure incentives.
- Agri & Seafood (20%): Immediate duty elimination + rising global demand.
📌 Notes for Investors
- Short-Term Catalyst: RBI policy on Feb 6 may add liquidity tailwinds.
- Medium-Term Watch: EU FTA implementation by early 2027.
- Risk Management: Monitor EU CBAM impact on non-green exporters.
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.
