India-US Interim Trade Framework Signals Improved Relations and Boosts Pharma Sector, Says Vikas Khemani

The recently announced India-US interim trade framework marks an end to a period of “coldness” in bilateral relations, according to Vikas Khemani, Founder of Carnelian Asset Management.

Speaking to CNBC-TV18, Khemani emphasized that the deal signals that the two countries are creating “a conducive environment to make the relationship work.”

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“… India has sorted out many things – FTAs with the EU, FTAs with many other countries, and now with the US. India stands in a very solid position. This does not mean everything is open or that there will be no issues. Those things are part of the normal process and will continue. There will be some minute details to be worked out,” Khemani said.
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Pharma is the leading sector

While the broader agreement involves complex trade-offs, the pharmaceutical sector remains a standout winner.

“Even at the peak of tariffs, pharma was untouched because it’s critical,” Khemani explained. “Raising tariffs would only increase medical costs, which the US is already struggling with. I see a very low probability of tariffs coming back on pharma.”

Khemani said as the clarity returns, momentum which was lost over the past year should come back.

“Beyond textiles and auto components, many new sectors could gain access to the US market over the next two to five years,” Khemani said.