FIIs Poised for Return as Trade Uncertainty Eases
With the India–US trade deal now announced, foreign institutional investors (FIIs) are expected to return to Indian equity markets as long-standing trade-related uncertainties begin to fade. In an exclusive conversation with ANI, Ashish Chauhan, Managing Director and CEO of the National Stock Exchange, said global investors had remained cautious through most of 2025 largely because of unclear trade signals between India and the United States.
“Absolutely. One of the reasons why FPIs were holding back through 2025 was trade uncertainty. It’s not just tariffs that matter, but the signals they send. Earlier, it looked like India and the US were drifting apart. This deal clearly brings the two countries closer,” Chauhan said.
Why the India–US Deal Matters for Markets and Trade
Calling the agreement a long-awaited but positive development, Chauhan noted that the deal came after nearly a year of delay, despite being widely anticipated. He highlighted the complementary nature of the two economies, with the US being the world’s largest economy and heavily import-dependent, while India plays a key role in employment generation and sits high on the global technology pyramid, particularly in IT services.
“Kudos to Prime Minister Narendra Modi for holding firm and securing the best possible outcome for India,” Chauhan said. He added that bilateral trade between India and the US stood at around USD 210 billion in 2024, with goods accounting for USD 135 billion and services contributing USD 85 billion, figures that are likely higher now.
Energy, Manufacturing, and India’s Strategic Advantage
Beyond trade numbers, Chauhan pointed to the growing importance of Global Capability Centres (GCCs) of major US companies in India, underlining why the US remains a crucial strategic partner. He said industry and services sectors have welcomed the deal’s outcome.
On energy, Chauhan highlighted India’s strength in refining difficult crude varieties such as Venezuelan oil. With nearly 85% crude import dependence, Indian refineries are designed to process heavy and sour crude, enabling India to emerge as the world’s largest exporter of refined petroleum products.
He also noted that bilateral agreements like this help India overcome disadvantages faced under WTO rules, especially in labour-intensive sectors such as garments. With electronic exports—including smartphones—rising sharply and the US gradually diversifying away from China, Chauhan said India is well positioned to become a major global manufacturing hub in the years ahead.
(This article has been syndicate from ANI)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
