Stocks To Watch, India US Trade Deal: Investors are eyeing these chemical sector stocks due to USA tariff cut:The India-US trade deal is expected to significantly benefit the chemical sector.

News Topical, Digital Desk : The India-US Interim Trade Agreement (ITA) between India and the United States appears to be providing significant benefits to the Indian chemical sector. Under this agreement, the US tariff on Indian chemical exports has been reduced from 50 percent to 18 percent. This will not only benefit Indian companies through lower duties but also provide a significant competitive advantage over Chinese companies in the US market.

Tariff on Indian chemical products
The proposed 18 percent tariff on Indian chemical products in the US (Tariff News) is much lower than that on China. 47.5 percent duty is levied on chemical products coming from China. India has also joined the list of countries with the lowest tariffs compared to other emerging markets. 18 percent tariff is applicable on India in the US, 19 percent on Thailand, Philippines, Malaysia and Indonesia, 25 percent on Mexico and South Korea, 30 percent on South Africa and 50 percent on Brazil.

However, it's important to note that the new 18 percent tariff will only come into effect after the interim trade deal is officially signed. Currently, the two countries have only issued a joint statement (India US Trade Deal Statement), and the agreement is yet to be signed. Following this deal, several chemical stocks have come under investor scrutiny. These include Aarti Industries, Navin Fluorine International, Gujarat Fluorochemicals, Laxmi Organic Industries, Vinati Organics, and SRF Ltd. Aarti Industries CEO Suyog Kotecha recently stated that approximately 40 percent of the company's exports to the US were subject to the highest duty of 50 percent, significantly impacting profits.

Chemical export volumes may recover. Mumbai-based brokerage firm Axis Direct estimates that this deal could lead to a 20 to 25 percent recovery in specialty chemicals export volumes from India to the US. The US currently accounts for approximately one-fifth of India's annual chemical exports of $6 billion.