Global and Indian brokerages have expressed optimism regarding the India–US trade deal, viewing it as a significant boost for India’s economy, corporate earnings, and foreign investment sentiment. The endorsement from financial experts resonated in the stock markets, with the Sensex surging over 4,200 points to reach a new high of 85,871.73 during intraday trade.
Experts believe that the reduction in reciprocal tariffs on Indian exports to the US will alleviate pressure on India’s external balances and enhance growth prospects. Goldman Sachs mentioned that the lower tariffs could potentially reduce India’s current account deficit by about 0.25 per cent of GDP in 2026, bringing it down to approximately 0.8 per cent.
Additionally, the trade agreement is expected to attract capital inflows once fully implemented, potentially bolstering the rupee and mitigating downside risks to its dollar-rupee forecast. Goldman Sachs also indicated that the Reserve Bank of India might maintain the repo rate at 5.25 per cent through 2026, signaling the end of its rate-cut cycle.
Bernstein noted that the positive sentiment surrounding India presents an opportune moment for investors to enter the market, despite recent softness in corporate earnings. Nomura emphasized the anticipated resurgence of foreign investment in India, projecting a balance of payments surplus of around $7 billion in FY27.
