Core Insights - The U.S. has reduced reciprocal tariffs on Indian goods from 50% to 18%, leading to a significant market rally in India [1][10] - The trade deal is expected to act as a major growth catalyst for Indian ETFs, alleviating the "tariff overhang" that previously caused foreign investors to withdraw nearly $12 billion from India [2] New Tariff Framework & Key Beneficiaries - The new tariff framework includes a reduction of punitive tariffs on Indian goods, with India committing to invest $500 billion in U.S. sectors by 2030 and phasing out Russian oil imports [4] - High-export industries such as IT Services, Textiles & Apparel, Pharmaceuticals & Chemicals, and Automotive & Engineering are poised to benefit from the tariff reduction [5][6] Impact on Indian Companies - Key beneficiaries listed include Reliance Industries, Infosys, Cipla, and Larsen & Toubro, which are expected to see improved margins and export opportunities due to the tariff cut [7] Market Outlook - The outlook for Indian equities has shifted to "bullish," with projections indicating that India's GDP will grow slightly below 7% annually over the next three years [9] - Analysts expect the Nifty 50 index to reach 30,000 by the end of 2026, representing a potential 15% upside from last November's levels [11] Indian ETFs to Gain - iShares MSCI India ETF (INDA) has net assets of $9.21 billion and has gained 3% following the trade deal announcement [12][13] - WisdomTree India Earnings Fund (EPI) has total assets of $2.61 billion and has also risen 3% post-announcement [14] - iShares India 50 ETF (INDY) with total assets of $621.1 million has rallied 2.8% following the deal [15] - Franklin FTSE India ETF (FLIN) has total assets of $2.82 billion and has increased by 2.6% after the announcement [16]