India-US Trade Deal: The historic trade deal between India and America has seen a huge momentum in the Indian stock market on Tuesday. Especially, there has been a huge upsurge in the textile or textile industry shares. Where the share prices of top exporters like KPR Mill, Gokaldas Exports, Welspun Living have increased by up to 20% in a single day.

Key aspects of the India-US trade deal:

Tariff reduction: After the talks between US President Donald Trump and Prime Minister Narendra Modi, the tariff on goods exported from India to America has been reduced to 18%. It is to be noted that earlier this rate was at a high level of 25% to 50%.

Stop buying oil from Russia: As part of this agreement, India has decided to stop buying oil from Russia and has agreed to import more energy resources from America instead.

India ahead of the competition: Due to this tariff reduction, India has come into an advantageous position compared to competing countries like Vietnam and Bangladesh. Currently, those countries have to pay 20% duty in the US market.

Impact on the stock market:

Most of the major companies in the textile industry earn 50% to 70% of their revenue from the US market. As a result, the news of this agreement had a huge positive impact on the market.

What is the status of which shares

Gokaldas Exports and Indo Count Industries rose 20% and reached the upper circuit.

Shares like KPR Mill, Welspun Living and Trident also saw big jumps.

Sensex and Nifty also started trading at record highs due to the impact of this agreement.

Why is this agreement important?

Indian exporters have been under pressure due to US tariff policies for the past few months. On the one hand, the recent free trade agreement with the European Union (EU) and on the other hand, this big agreement with America – all together, market experts believe that a new horizon has opened for India’s textile industry.

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