India and America are close to a trade agreement.
The Indian stock market, which has been going through difficult times for several months, is once again coming back on track. There is hope of revival in the market which is facing pressure of many issues from oil to tariffs. Experts believe that this time the Indian stock market will create new records.
This change in the market is not happening suddenly and just like that, but such big changes are going to happen at the global level, which will act as a booster for the Indian stock market. Let us know one by one those 5 reasons due to which there will be a positive impact on the stock market.
1. India-US trade agreement
There is a possibility of India-America trade agreement. India and America A long-pending trade deal is close to being finalized. According to a report, this agreement can be announced between US President Donald Trump and Indian Prime Minister Narendra Modi in the ASEAN summit to be held later this month.
2. US Tariff
According to media reports, if India-US trade agreement is signed then the huge 50% tariff on the export of Indian goods may be reduced to between 15% to 16%. If this happens, it can be a big relief for India’s exporters and economy as well as the stock market.
3. Russian Oil
It is being claimed in media reports that India and America are getting closer to a trade deal, in which it is also possible that India may reduce the purchase of oil from Russia. US President Donald Trump said that he has received an assurance over the phone from Indian Prime Minister Narendra Modi that India will reduce the purchase of oil from Russia. Trump told reporters, he (Modi) will not buy more oil from Russia now. He wants this war to end as much as I do. He wants to see an end to the war between Russia and Ukraine and as you know, he’s not going to buy any more oil.
Also read- India will become rich due to one no from China! What happened that Trump agreed to reduce tariffs?
4. Trade Agreements
India is strengthening new economic relations with many countries including Brazil and Germany. Its objective is to enhance existing trade agreements. India is already close to an important trade agreement with America also. Commerce and Industry Minister Piyush Goyal has recently said that the government’s focus is on improving the overall business environment of the country.
5. Benefit to Indian exports
Bharti has shown good growth in recent months despite America’s 50 percent tariff. If there is an India-US trade agreement, it can be of great benefit to Indian exports, because the losses being incurred by Indian exports due to tariffs will also be compensated and the new agreement can further boost exports.