BLOG

On the macro front, optimistic expectations around US India trade negotiations and the Goods and Services Tax (GST) reform have injected positive sentiment into the market. India’s plan to maintain its borrowing schedule and capital expenditure targets in the second half of the year signals continued accommodative fiscal policy, supporting economic growth. Meanwhile, the European Union’s rejection of the US proposal to impose a 100% tariff on Indian goods is seen as a significant diplomatic win, safeguarding the interests of Indian exporters and supporting valuations of industries focused on the European market.

Analysts expect sectors like textiles, pharmaceuticals, auto components, engineering goods, and IT services to benefit directly from the progress of the EU India FTA talks, with export competitiveness likely to improve further,