The proposed India–US trade deal is expected to provide a boost to India’s export outlook, though concerns remain around the energy and metals sectors, according to a report by SBI Capital Markets (SBICaps).
SBICaps said improved market access and lower trade barriers could support export growth across sectors such as textiles, pharmaceuticals, engineering goods and electronics. The agreement is also likely to strengthen bilateral trade flows and encourage investment between the two countries.
However, the report cautioned that energy and metals could face challenges due to potential changes in tariff structures, pricing pressures and global market volatility. Any increase in input costs in these sectors could partially offset the broader export gains from the trade deal.
The brokerage noted that the overall impact would depend on the final contours of the agreement, including sector-specific concessions and implementation timelines. It added that policy support and supply-side measures would be crucial to ensure that export-oriented industries fully benefit from the pact.
Market participants said clarity on the deal could influence investment sentiment, particularly in export-linked sectors, while keeping a close watch on developments in energy and metals.