Shares of Indian textile and shrimp exporters saw a substantial increase on Wednesday, spurred by US President Donald Trump’s comments regarding a possible trade agreement with India, which heightened investor optimism for lower tariffs on domestic exports. These export-focused shrimp and textile companies derive a significant portion of their revenue from the American market.
During his address at the APEC CEO Summit Luncheon in Gyeongju, South Korea, President Trump praised Prime Minister Narendra Modi and stated that he intends to “do a trade deal with India.” He referred to Modi as “the nicest-looking guy” and “tough as hell.” Previously, shares of these export-oriented firms had experienced a notable decline after the Trump administration raised tariffs on Indian imports to 50 percent due to New Delhi’s acquisition of Russian oil. Stocks in the leading Indian shrimp industry increased by over 2 to 4 percent, with some that had previously dipped into negative territory recovering. Textile shares also reported gains of approximately 2 to 4 percent.
Trump reiterated, “I’m doing a trade deal with India and have great respect and love for Prime Minister Narendra Modi… we have a great relationship.” His encouraging comments come in the wake of last week’s reports indicating advancement on two of three significant points of contention: India’s ongoing import of discounted Russian oil and the US’s 50 percent ‘reciprocal’ tariff on Indian goods, which included a 25 percent ‘penalty’ for purchasing that oil. Both Republican and Democratic lawmakers have collaborated to bolster the India-US relationship, following the Trump administration’s announcement of several policies affecting Indian interests.
In the past 10 days, at least six bipartisan letters and resolutions have been created to defend the interests of the Indian American community, reaffirm the commitment to the India–US partnership, and urge the administration for accountability regarding its recent actions against New Delhi.