From Tata Motors to Sun Pharmaceutical Industries to Mphasis, about 100 Indian companies have generated close to $40 billion from the US in FY24, show data compiled from Bloomberg. Even though the list comprises companies from varied sectors, IT services and Pharmaceuticals dominate the list as the two together account for 42% of the total number of companies.
While Tata Motors generated $8.2 billion from the US, Pharma majors like Sun Pharmaceutical Industries and Dr. Reddy’s laboratories spawned nearly $2 billion from the country in FY24. Similarly, most Indian IT firms have greater presence in the US. For instance, the revenue of Mphasis from America stood at $1.3 billion in FY24, which is 81% of its total revenue. Similarly, mid-sized software firm Birlasoft also garner 85.5% from the US. Among Pharma companies with lion revenue share from the US include Biocon (44%), Gland Pharma (57%), Aurobindo Pharma (47%) and many others.
According to Taimur Baig, Managing Director and Chief Economist at DBS Group, The Trump administration is likely to demand lower rates from the Fed. “If Trump rides on large tax cuts, it will be great for corporate profits and equities,” added Taimur.
The US is India’s largest export market, and any imposition of tariffs could challenge India’s trade balance and impact these sectors. During the year FY24, India’s exports to the United States stood at $77.5 billion, while imports from the country were at $42.2 billion.
However, some section of analysts believe that if Trump enforces additional tariffs on Chinese imports, India could benefit from the “China Plus One” strategy in sectors like auto components and chemicals.
Nevertheless, IT stocks outperformed in Wednesday’s trade on the back of weak rupee. The Nifty IT index rallied as much as 4% to mark its biggest single-day gains in four months after the local currency hit yet another record low of 84.28 against the US dollar.
Also Read : BSE-listed firms add ₹8 lakh cr in mcap; Nifty climbs above 24,500
(Edited by : Poonam Behura)
