Ahmedabad/Rajkot, Feb 3 (IANS) The recent trade deal between India and the United States has contributed to improved sentiment in domestic equity markets and renewed optimism among exporters, particularly in Gujarat, market experts and industry representatives said on Tuesday.
The agreement comes amid ongoing efforts by both countries to ease trade frictions, rationalise tariffs and strengthen bilateral economic ties across key sectors.
In Ahmedabad, share market expert Jitendra Vyas said the announcement of the trade deal had been positively received by investors.
“Following the recent trade deal between India and the United States, a positive mood has been observed in the domestic stock markets,” he told IANS.
He added that the Union Budget had also supported market confidence, though some concerns remained.
“The budget has been viewed favourably by investors, except for the decision to increase the Securities Transaction Tax on futures and options trading,” Vyas said.
According to him, the combined impact of the budget and the trade agreement was expected to be supportive over the long term. “These developments are expected to benefit the market in the long run,” he said.
Vyas highlighted that the textile sector could see a notable impact, given India’s export position in the U.S. market.
“The textile sector, in particular, could benefit, as India’s exports to the U.S. are higher compared to countries such as Bangladesh,” he said.
He also noted that uncertainty in the pharmaceutical and information technology sectors had reduced following the deal.
Vyas said select large-cap stocks had already reflected investor confidence. “Shares of Reliance and Adani group companies have witnessed strong buying interest,” he said, adding that “investments in textile, seafood and automobile sector stocks could deliver good returns”.
He further said the agreement could have a positive impact on the currency. “We also expect that the Indian rupee will grow stronger because of this trade deal,” he added.
Export-oriented industries in Saurashtra have also welcomed the easing of trade conditions.
Rajkot Chamber of Commerce Secretary Parth Ganatra said relief in U.S. tariffs would provide momentum to regional industries. “When the tariff stood at 25 per cent, exports had declined by nearly 35 per cent. With the tariff now reduced to 18 per cent, exports are expected to regain momentum,” he told IANS.
Ganatra said higher tariffs had earlier pushed exporters to explore alternative markets. “During that period, industrialists had begun exporting to other countries, but with the relief granted by the U.S. and the addition of new markets, exports are now expected to rise significantly,” he said.
He added that micro, small and medium enterprises in Rajkot and across Saurashtra were likely to benefit.
“Just like trade agreements with the European Union and other countries, MSMEs from this region will get a boost, and investment will increase in the coming time,” he said.
Saurashtra mainly exports agricultural equipment, pharmaceuticals, spices, forging parts and machine components.
Ganatra also pointed out that lower tariffs compared to competitors such as Bangladesh and China were “a good sign” for exporters in the region.
–IANS
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