New Delhi: India and the EU together are home to 2 billion people, 25% of global GDP and a third of global trade. A free trade agreement (FTA) between the two countries is a giant step forward for the global economy. While trade discussions were taking place for almost two decades, more intensive discussions began from 2022 and concluded on 27 January 2026. Geopolitical and strategic implications
Dr. Vikas Gupta, CEO and Chief Investment Strategist, Omniscience Capital Given the status of the India-US trade agreement, the India-US FTA is symbolic as India has been able to find other markets for most of the goods it exports to the US. This should also be seen in the context of global supply chain restructuring initiatives to reduce dependence on China. This agreement will push back the US and shows that India will not compromise on access to agriculture and dairy as a large farmer population depends on these sectors. Taken positively, it shows that India is ready to provide access to high-end products, such as wine, or niche agricultural products, such as kiwi. This could be a template along which an India-US trade agreement could be struck.
Main features of the agreement
As per the EU approach, there will be low or zero tariffs on 96% of goods exported by the EU, while the Indian approach is that 99% of Indian exports will get privileged access.
investors Of For Suggestion And strategy
From an investment point of view, one should not get too excited and act hastily.
There is no reason to start investing in any of these sectors without proper analysis. Certainly, market leaders in these sectors are likely to gain maximum benefits from privileged market access. Every company needs to estimate how much profit it will make in terms of revenue in the next 3-5 years. This needs to be incorporated into the valuation model and then the revised intrinsic value needs to be compared to current market prices. Only if the market value is significantly lower than the intrinsic value then it would make sense to invest in those companies.
disciplined investment Approach
Today India’s stock market is not just a part of a normal cycle, but it is a period of great change. India’s economic strength is getting stronger with GST reforms, softening of interest rates and foreign capital.
According to Dr. Vikas Gupta, if investors adopt a scientific and disciplined strategy, then this period can become a golden opportunity for long-term wealth creation.
What can certainly be focused on is to be aware of the sectors or growth vectors that are likely to benefit given the FTA details above. For example, services and industry are two growth vectors that get a significant boost from this. A portfolio approach to this growth vector that focuses on the full universe of service companies and invests in a selected set of companies at any given time that are significantly mispriced given the growth opportunity is likely to deliver satisfactory returns over the long term when FTA benefits emerge. Similarly, the industry growth vector will benefit from access to engineering markets.
We would suggest a disciplined approach following a scientific investment framework for companies in these sectors, rather than a knee-jerk reaction to ad-hoc stocks promoted as beneficiaries of FTAs.
Author Dr. Vikas V. Gupta is the CEO and Chief Investment Strategist of Omniscience Capital. Omniscience Capital is a global investment management firm, focused on Indian and global equity investments based on its proprietary Scientific Investment Approach philosophy. Dr. Gupta holds a B.Tech from IIT Bombay and a Doctorate from Columbia University. He is a former scientist and professor and has rich experience of over two decades in the capital markets. His articles and views are regularly published in leading global financial publications and media.