A resolution to the trade standoff could reshape sector dynamics, with Indian tech and semiconductor firms poised to gain while autos, defense, and pharma may face tougher competition.
India and the U.S. may be close to ending their long-running tariff dispute, with a resolution expected in the next 8–10 weeks, according to India’s Chief Economic Adviser Anantha Nageswaran.
SEBI-registered analyst Mayank Singh Chandel said the talks are in advanced stages and both sides appear close to an agreement. He likened the years-long standoff to “two friends who keep arguing about who pays the restaurant bill.”
Potential Benefits Of A Deal
Chandel said the settlement would mean smoother trade flows, possible tariff cuts or removals, broader sectoral cooperation, and a stronger India–US relationship.
He noted that the tariff fight has stretched across agriculture, manufacturing, and digital services.
Sectors Poised To Benefit
If the tariff fight cools off, Indian IT companies could find themselves winning bigger outsourcing deals from the US, giving a boost to their revenues. American tech giants may also increase their investments in India’s chip manufacturing and data center infrastructure.
For everyday consumers, smoother imports mean faster access to new gadgets, parts, and cross-border tech tie-ups.
Sectors Facing Pressure
Chandel cautioned that some industries may come under strain. Autos could face stiffer competition as Tesla and other US automakers push harder into India.
Defense exports from the US may pressure local defense firms, while the pharmaceutical industry could see challenges if Washington presses India on patents and intellectual property rules.
Alcohol and FMCG players may also face a tougher fight as US brands gain easier access to the Indian market.
Investor Takeaway
Chandel said businesses on both sides are waiting for clarity, but if a deal is signed, investors will need to watch sector performance closely.
In his view, IT and semiconductors could shine, while autos, defense, and pharma may struggle.
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