The 'Mother of All Deals'
The India-EU Free Trade Agreement, hailed by Prime Minister Narendra Modi as the "mother of all deals," has created a buzz among investors. Mahesh M. Ojha
from KC Securities, believes export-focused companies with substantial exposure to the EU will be the primary beneficiaries. While the full impact may unfold gradually, analysts agree the FTA will improve the outlook for exporters. The benefits are expected to materialize over time as tariffs decrease, regulations are aligned, and trade flows increase. The agreement is viewed as a structural shift in India's export dynamics rather than a short-term trading trigger. Sector-specific analysis points to textiles, pharmaceuticals, and specific chemical companies as early frontrunners. Furthermore, labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, and automobiles are expected to receive a strong boost, as tariffs of up to 10% on approximately $33 billion of exports are likely to be eliminated.
Key Beneficiary Sectors
Market experts have identified sectors poised to gain the most from improved access to the EU market. These include export-oriented firms in textiles, gems and jewellery, auto components, pharmaceuticals, IT, and defence. These industries are expected to see increased opportunities. Certain domestic auto manufacturers might face pressure, as European vehicles become more competitive. Furthermore, some liquor companies could see competition from European wines due to tariff adjustments. Emkay Global sees textiles, select pharma, and chemical companies as key gainers. Ross Maxwell from VT Markets believes the FTA could strengthen India's trade competitiveness, improve investor confidence, and help sectors such as pharma, textiles, auto components, and IT services access the EU market more effectively. Several export-focused counters in textiles, pharmaceuticals, and specialty chemicals have already seen gains, with some rallying up to 12%.
Expert Stock Recommendations
Several market analysts and financial experts have recommended specific stocks that are likely to benefit from the India-EU FTA. Sugandha Sachdeva from SS WealthStreet has named Samvardhana Motherson International, Apex Frozen Foods, Infosys, TCS, Cipla, Privi Speciality Chemicals, and PCBL as promising plays. These companies are well-positioned to benefit from increased export demand, improved pricing power, and diversification beyond traditional markets like the US and Asia. The rationalization of tariffs is expected to support volume and margin growth. Companies such as Apex Frozen Foods (30%), Avanti Feeds (17.2%), Aequs (49.45%), Aeroflex Industries (23%), Rishabh Instruments (68.1%), AXISCADES Technologies (37%), Dynamatic Technologies (55.83%), and RACL Geartech (58.09%) are amongst the preferred stocks for long-term investments. Additionally, Bharat Forge (35%), Tata Motors (35–40%), Precision Camshafts (23.14%), Sona BLW Precision Forgings (22%), Samvardhana Motherson International (31%), and Endurance Technologies (23%) are also expected to see benefits.
Additional Stock Picks
Other companies highlighted for their potential include Anthem Biosciences (55%), Acutaas Chemicals (38.7%), Supriya Lifescience (41%), Rain Industries (40%), Hikal (28.5%), Marksans Pharma (39%), Indoco Remedies (49%), Divis Laboratories (33%), Gland Pharma (20%), Emcure Pharmaceuticals (20%), and Aurobindo Pharma (29.7%). In addition to these, Solara Active Pharma Sciences (20.24%), Aimtron Electronics (23.61%), Blue Jet Healthcare (79%), M M Forgings (21.4%), PTC Industries (54.06%), KPR Mill (24.32%), PDS (71%), and Trident (18–20%) are worth noting. Gokaldas Exports (30–35%), Welspun Living (20–22%), Vardhman Textiles (22–25%), TCS, HCL Technologies, Wipro, Tech Mahindra, Cipla, and Privi Speciality Chemicals are also listed as potential beneficiaries. These stocks are seen as well-positioned to capitalize on the opportunities presented by the free trade agreement.
