President Trump and PM Modi announced a historic trade agreement earlier this week, slashing tariffs from a staggering 50% down to 18%. This massive shift is realigning global power, ending India’s reliance on Russian oil, and opening the floodgates for billions in trade, which is a positive for investors.
India’s stock market is already reacting positively to this new deal, and three sectors have the potential to do well.
Many pharmaceuticals are manufactured in India, and with tariffs coming down, these companies can sell more to the US, giving them a massive advantage. The textile industry could also boom, making India outproduce Vietnam and Bangladesh. India can continue their textile trade with China and increase its supply of textiles to the US.
Thirdly, the IT services sector. American big tech giants like Microsoft, Apple and Nvidia have massive operations in India that will benefit from reduced tariffs.
‘The new tariff deal is a game-changer for India and is set to potentially create a trade boom over the next year.’ – Nigel Green, CEO, deVere.
Investors should always look for new global opportunities while maintaining a diversified portfolio.
The world’s richest man, Elon Musk, announced this week the merger of SpaceX and xAI, creating a new company worth $1,25 trillion. This strengthens Musk’s goal to build data centres in space. xAI’s Grok is being used in Tesla vehicles and SpaceX already. Is this just an attempt to help indebted xAI out of the hole, or a master stroke of genius to incorporate, streamline and innovate AI?
AI is a known money guzzler as research and innovation continue, but the real winners will be the AI companies that can start showing a profit from their AI innovation. SpaceX is prepping for its IPO later this year, which could be the largest IPO in Silicon Valley history.
Please note, the above is for educational purposes only and does not constitute advice. You should always contact your adviser for a personal consultation.
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