India and the U.S. just cleared the first hurdle toward what could be one of this year's most consequential trade agreements. The two sides have finalized a broad framework covering 19 areas from agricultural goods and digital services to data localization and critical minerals. This follows Vice President JD Vance's visit to New Delhi and comes as India tries to avoid the return of a 26% Trump-era tariff.
For investors, the opportunity set is big. U.S. tech and retail giants like Amazon and Walmart's Flipkart are eyeing improved access to India's vast consumer base, long shielded by domestic protectionism. Meanwhile, players like Alphabet, Meta, and Amazon are hoping to ease data localization rules that have long been a sticking point for scaling cloud and AI services in the region. India's inclusion of critical minerals in the talks also opens new doorsespecially as companies like Tesla (NASDAQ:TSLA) look to diversify battery supply chains and de-risk from China exposure.