India EU trade deal closer than ever: Jefferies lists 4 sectoral winners for stock market investors
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India’s long pending free trade agreement (FTA) with the European Union is around the corner, with Jefferies saying the proposed deal could materially alter sectoral dynamics for Indian exporters, especially in textiles, autos, electronics and pharma chemicals, while politically sensitive agri and dairy are likely to be kept out. Talks that began in 2007 and stalled in 2013 have seen renewed momentum since 2022, and Jefferies notes that broad agreement on avoiding sensitive items such as agriculture on both sides seems to be culminating in the FTA in the coming few days. The brokerage points out that India’s annual goods trade with the EU is about US$130 billion, similar in size to that with China or the US, with exports to the bloc at an annualised US$75 billion, accounting for 17% of India’s total exports and roughly 1.9% of GDP. India currently runs a sizeable surplus with the EU, helped by a post Russia Ukraine war surge in petroleum ...