US–India Trade Deal Lifts Shrimp and Textile Stocks Up to 20%

Shares of export-oriented shrimp and textile companies rose by as much as 20% on Tuesday following the announcement of the India–US trade deal. The deal, first revealed by US President Donald Trump, reduces reciprocal tariffs on Indian goods to 18% from the earlier 50%.

In early trade, shares of Gokaldas Exports Limited jumped 20% to ₹694.05, hitting the upper circuit in the early hours. while K.P.R. Mill Limited was trading near 17% up at ₹1,003.5. Similarly, Vardhman Textiles Limited was up 11%, while Pearl Global Industries Ltd gained over 12%.

Among shrimp exporters, Avanti Feeds Limited was trading at ₹913.00, up 14.13%, while Apex Frozen Foods Limited rose 14.31% to ₹335.60 on the NSE.

These firms earn a significant share of their revenue from shipments to the US. After falling sharply when President Donald Trump raised tariffs on Indian exports, the stocks are witnessing a strong rebound today.

“The India–US relationship, which many expected to strengthen during President Trump’s second term, reached a new low in June. For the world at large, strained ties between the two largest democracies were hardly good news. Against this backdrop, the new India–US trade deal, lowering the average tariff rate to about 18% from the earlier punitive 50%, marks a meaningful reset in bilateral economic relations,” said Nachiketa Sawrikar, fund manager at Artha Bharat Global Multiplier Fund.

He explained that for India, lower tariffs improve access to the US market for labour-intensive exports such as textiles, engineering goods and pharmaceuticals, supporting jobs and manufacturing scale.

“The 18% rate brings India broadly in line with its ASEAN peers and represents the best outcome realistically achievable. For the US, the agreement creates opportunities to expand exports of energy, agricultural products and advanced technologies, while strengthening supply-chain diversification away from over-concentrated geographies,” he added.

For many MSMEs as well as listed goods exporters, a major overhang has been removed, particularly in textiles, auto and auto ancillaries, and gems and jewellery, said Harsh Gupta Madhusudan, fund manager – PIPE Fund at Ionic Asset. Outlook Business has reported that over the past few months, India’s gems and jewellery exports have declined, hurting exporters.

“By lowering tariff duties, the United States signals a renewed commitment to trade openness and economic efficiency. Reduced tariffs cut input costs for domestic industries, strengthen supply chains and ease inflation by lowering prices for businesses and consumers. They benefit key sectors—including manufacturing, technology, healthcare and renewable energy—by improving access to intermediate goods, capital equipment and critical components. Importantly, this approach aligns with the spirit of cooperation fostered by the strong personal rapport between Narendra Modi and Donald Trump, reinforcing trust and predictability in bilateral trade,” said Rajeev Juneja, president, PHDCCI.