EXCLUSIVE | India-US trade deal set to unlock FDI surge, stabilise markets: Trust MF CIO Mihir Vora | Video

India-US trade deal: The recently sealed interim trade deal between India and United States is poised to reverse foreign portfolio investor (FPI) outflows, attract substantial foreign direct investment (FDI), and bolster India's manufacturing sector, according to Mihir Vora, Chief Investment Officer at Trust Mutual Fund. In an exclusive interview on ET Now, Vora highlighted how delays in finalising the trade deal had exacerbated India's market underperformance relative to global peers.

"FPI outflows, lack of FDI inflows, and the weakening currency were causing a negative loop, making people jittery about overall stability," he explained. With the interim agreement now in place, Vora described it as a "big positive" that could break this cycle.

The India-US trade deal, which has announced earlier this week, includes key concessions such as the US lifting a 50 per cent tariff on Indian exports impacted by Russian oil imports and a 25 per cent tariff on certain Russian imports sold in India. In return, India has agreed to lower duties on US goods like distilled spirits, grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits. Sectors like agriculture and dairy remain protected on both sides.

Vora emphasised the deal's potential to catalyse FDI. "A lot of FDI proposals would have been in the pipeline waiting for this to happen," he said. "Many that were on hold will now come to fruition, and we should see a lot of action in the next 6-12 months—announcements by multinationals to set up more capacities in manufacturing sectors in India."

India-US trade deal: Zero tariffs on many exports

Union Minister for Commerce and Industry Piyush Goyal on Saturday has described the newly announced framework for an interim trade agreement between India and US as a landmark moment in India's journey toward becoming a developed nation by 2047. He said that there are zero tariffs on a wide range of Indian exports.

Addressing the media, Goyal said, "There are some people who don't care about farmers, who try to mislead the country, they are shocked today to see how this agreement has not done anything because of which our farmers can face loss."

Goyal listed out the products where India has not given any relief in the agreement. He said, "India has not given any relief in meat, poultry, soyabean, dairy products, maize, rice, wheat, cereals, sugar, millet, fruits like banana, strawberry, cherry, citrus fruits, green peas, moong, chana, oil seeds, animal feed products, tobacco."