As US President Donald Trump and Indian Prime Minister Narendra Modi announced the resumption of trade negotiation between the two countries, shares of export-oriented sectors edged higher in hopes of a breakthrough.
US President Donald Trump, on a Truth Social post, announced that Washington and New Delhi would restart negotiations to resolve their festering trade dispute. “I am pleased to announce that India, and the United States of America, are continuing negotiations to address the trade barriers between our two nations. I look forward to speaking with my very good friend, Prime Minister Narendra Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our great countries!” he posted.
The comments appeared to soothe investor nerves after recent months of simmering trade tensions. Indian exporters had come under pressure earlier when the Trump administration slapped tariffs as high as 50% on goods from India, accusing New Delhi of funding Russia’s offensive on Ukraine with its continued purchase of Russian crude. Those duties had hammered shares of key export sectors including textiles and shrimp players, but optimism about a possible deal fuelled a sharp rebound on September 10.
The market reaction reflected an immediate rejoice. Apex Frozen Foods soared nearly 14%, Avanti Feeds jumped more than 9%, while Coastal Corporation climbed over 5%.
The United States remains India’s single largest market for shrimp, accounting for 48% of export value and 40% of volumes in 2024. But with the sector reeling from higher American tariffs, Europe may now be stepping in to soften the blow.
According to a report in the Times of India, the European Union has cleared 102 additional Indian marine establishments for export, marking an immediate 20% increase in shipment capacity to the bloc. The move raises the total number of Indian facilities approved by the EU to 604.
For India’s seafood sector, and shrimps in particular, the timing remains critical. Washington’s recent tariff hikes had left exporters scrambling for alternative destinations, souring sentiment for the sector. The EU’s expanded market access offers a much-needed diversification route at a moment when reliance on the US looks increasingly fraught.
Among textile names, Gokaldas Exports surged close to 7%, Welspun Living advanced more than 7%, Arvind rose over 4%, and KPR Mill added around 3%. Raymond Lifestyle also notched up gains of nearly 2%.
“A major positive for the market today comes from President Trump’s initiative to improve India–US relations and Prime Minister Modi’s positive response,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “However, from past experience, the market should judge President Trump by his actions and not his words.”
Adding to the backdrop, the US Supreme Court has agreed to review the legality of Trump’s sweeping global tariffs after a lower court previously ruled them unlawful. That decision could have broad implications for future trade policy.
