After India Eu Trade Deal, many unresolved questions of India can be solved.
India-EU trade deal, which is also being called the mother of all deals. This is no less than an example for the world. That too at a time when Trump’s tariffs are trying to shake all the economies of the world. It is severely disrupting the world’s supply chain. Now the question is, what benefit will India get from this deal? The benefit we are talking about is completely different. Because India has tried to hit many birds with one stone by doing free trade with the EU.
If we start with America and Trump, then the loss caused by 50 percent tariff can be compensated by the EU trade deal. This deal may increase the pressure on US President Donald Trump to make a trade deal with India. That too without imposing any conditions. The continuously falling rupee can get a big support. The rise in rupee on Tuesday and now Wednesday is also indicating this.
On the other hand, a bullish atmosphere can be created in the stock market once again. The last minute surge on Tuesday and the bullish atmosphere on Wednesday are proof of this. Also, the direction of foreign investors may once again turn towards India. However, on Wednesday, foreign investors had booked profits of more than Rs 3 thousand crores. Let us try to understand this in detail.
Effect of Trump tariff ends
When America imposed 50 percent tariff on India, it was estimated that India would suffer huge losses. There was a lot of loss also. Even after that, America remains an important market for India. But India’s exports have decreased. If we look at the figures, when the current financial year started, India’s exports were worth 8.4 billion dollars in April, which has come down to 6.88 billion dollars in the month of December. This means that there has been a loss. Now the trade deal between India and EU is opening the way for exports worth about Rs 6.4 lakh crore to different states of the country. This means that this trade deal will not only compensate for India’s loss but will also benefit the country.
There will be speed in India and US trade
The India and EU trade deal is being called the world’s biggest deal. There is a reason for this also. The population of India and Europe is around 200 crores. These two represent one fourth of the world’s GDP i.e. 25 percent of the economy. It also opens a market worth 27 trillion dollars. Apart from this, bilateral trade between India and EU can reach between $200 billion to $500 billion in the next few years. In such a situation, the pressure for America to trade with India will increase. According to experts, if America does not trade with India, then Europe can put its stamp on Indian goods and send them to America at higher prices. Due to which we may see a rise in inflation in America. In such a situation, America will have benefit only in the deal with India.
Trade deals with Canada and other countries
Not only America but there may be an increase in stalled trade deals with other countries. Also, with the completion of trade deal with EU, India can also get good offers from other countries. In recent times, there have been indications that Canadian PM Mark Carney may visit India in the month of March. Apart from this, there can be a uranium deal worth Rs 25 thousand crore between India and Canada. Which may provide a new lease of life to India’s nuclear power plants. On the other hand, an agreement can also be seen between the two countries on AI, new energy, crude oil and other things. Apart from this, we may also see a rise in trade deals with other countries of the world.
Economy will gain momentum
Experts estimate that due to the India-EU trade deal, the country’s economy may see a big boom in the coming years. According to experts, this deal was very important to make the country a 5 trillion dollar economy. Besides, it is also very important for the speed of the country. At present the economic growth of the country has been estimated at 7.2 percent. According to the financial year 2027, it has been imposed below 7 percent. But the trade deal with the EU can take this pace above 7 percent. Also, the country’s target of 5 trillion dollar economy can be achieved soon. At present, the country’s economy is worth more than 4 trillion dollars and is the fourth largest economy in the world.
Stock market forecast to rise
There has been a decline in the stock market in the year 2025 and thereafter in the month of January. In the current month, there has been a decline of about 4 percent in Sensex. Whereas Nifty 50 has fallen down to 3.50 percent. The main reason for this is the Trump tariff and its impact. But the trade deal with EU may lead to a rise in the stock market. An example of this was seen on Tuesday also. When after the expiry trade ended before the closing of the stock market, a rise of more than 300 points was seen. On the other hand, on Wednesday also an increase of about 650 points was seen in Sensex.
rise in rupee
The Indian rupee has suffered the most due to Trump tariffs. If we look at the figures, the rupee has seen a decline of more than 5 percent in the year 2025 and in the month of January of the new year, a decline of more than 2 percent has been seen against the dollar. But ever since there has been a trade deal with the EU. Since then there has been a rising trend in the rupee. On Tuesday, a rise of 22 paise was seen in the rupee against the dollar and on Wednesday also a rise of 11 paise was seen in the rupee during the trading session. According to experts, if RBI intervenes in the currency market in the coming days, the rupee may recover from the level of 91 and strengthen to the level of 90.80.