Trident, JK Tyres, SRF among top beneficiaries of twin trade deals; tailwinds for exports

India's recent tariff relief from the United States (US) has strengthened the country's role in global exports, closely following the finalisation of the European trade agreement. The India-US trade deal is expected to drive substantial growth for Indian exports, especially in sectors like textiles, apparel, and electronics, as Ventura Securities highlights.

The dual agreements—described as "the India-EU Free Trade Agreement (the Mother of all deals) and the India-US Trade Deal (the 'Father of all deals')—have fundamentally altered India's trade structure. For sectors with high export dependence, such as textiles, chemicals, and auto ancillaries, the changes signal immediate margin improvements and long-term opportunities.

The India-US trade deal took a positive step, with the US reducing the tariff on India’s exports to 18 per cent and doing away with the penal tariff of 25 per cent, said Kotak Institutional Equities, with expecting markets to react positively with some near-term appreciation bias for the Indian rupee on the back of positive sentiments and flows.

While details are awaited, reports suggest that India will have to remove their tariff and non-tariff barriers, commit to more imports from the US in addition to the current levels and stop buying Russian crude oil," it added. "Indian producers or tariff rates are relatively low, though some risks remain for auto parts, iron/steel, plastics and chemicals."

According to Ventura Securities, this development brings a competitive 18% reciprocal tariff with the US—which effectively scraps the 25% 'Russian oil penalty'—and achieving zero duty access for 99% of exports to the EU. This positions India as a favoured alternative to Chinese and Southeast Asian supply chains.

Ventura Securities notes that most key players are already operating at 75–90% capacity utilisation, and with reduced trade barriers, the industry is likely to enter a significant 'Brownfield' expansion phase. Export-dependent companies are expected to benefit most from tariff relief, particularly those with substantial US market exposure.

Major competitors remain leading Chinese and Southeast Asian firms, but the new deals may shift the competitive landscape in favour of Indian producers. Ventura Securities observes that the current environment is set for substantial expansion across export-driven segments, as regulatory changes and improved market access begin to influence company strategies and sector returns.

Ventura Securities has picked Gokaldas Exports, Welspun Living, Indo Count Industries, KPR Mills, Trident, Arvind, Vardhman Textiles, Bharat Forge, Samvardhana Motherson International, Sona Comstar, Sundaram Finance, Balkrishna Industries, JK Tyres, Avanti Feeds, Apex Frozen Waterbase, Sky Gold, Vaibhav Global, Goldiam International as key beneficiaries of the trade deal.

It also sees Aarti Industries, Vinati Organics, SRF, Navin Fluorine, Gujarat Fluorochemicals, PI Industries, Mirza International, Mayur Uniquoters, Superhouse and Bhartiya International as other key beneficiaries. All these companies have up to 90 per cent experts to the US or European nations.