New Delhi: Shares of Indian textile and shrimp exporters surged on Wednesday following US President Donald Trump's comments on a potential trade deal with India, raising investor expectations for reduced tariffs on domestic exports.
Export-oriented shrimp and textile stocks receive a major chunk of their revenue from the American market. President Trump's comments at the APEC CEO Summit Luncheon in Gyeongju, South Korea, where he lauded Prime Minister Narendra Modi, adding that he is going to "do a trade deal with India". US President Trump praised Modi, calling him “the nicest-looking guy” and “tough as hell.”
The shares of these export-orientated companies had significantly declined earlier after the Trump administration increased tariffs on Indian imports to 50 per cent, citing New Delhi's purchases of Russian oil.
Leading Indian shrimp industry stocks rose by more than 2 to 4 per cent, and some that had fallen into the red following US tariffs returned to positive territory. Textile stocks also experienced around 2–4 per cent gains. "I'm doing a trade deal with India and have great respect and love for Prime Minister Narendra Modi… we have a great relationship," he said.
Trump's positive remarks follow reports last week of progress over two of three major sticking points – India's continued import of discounted Russian oil and the US' 50 per cent 'reciprocal' tariff on the import of Indian goods, which included a 25 per cent 'penalty' for buying that oil. Both Republican and Democratic lawmakers have joined hands to support the India-US relationship, months after the Trump administration announced a series of policies targeting Indian interests.
At least six bipartisan letters and resolutions have been drafted over the past 10 days defending the interests of the Indian American community, reaffirming support for the India–US partnership, and pressing the administration for accountability over its recent actions targeting New Delhi.
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