---
title: "Policy Pulse — Modi — 13 Jul 2026"
ticker: "TCS:INFY:WIPRO:HCLTECH:SUNPHARMA:DRREDDY:CIPLA:DIVISLAB:WELSPUN:TRIDENT:VARDHMAN:TATASTEEL:JSWSTEEL:HAL:BEL:DATAPATTERNS:APOLLOMICRO"
date: "2026-07-13"
tags: ["policy-pulse","modi","india","trade","tariffs","it-services","pharma","textiles","defence","aerospace"]
summary: "India rejects rushed US trade deal — demands tariff edge over China. Risk of steeper tariffs later this month. IT (TCS, INFY) and textiles (WELSPUN, TRIDENT) exposed. HAL receives 7th GE engine — Tejas Mk1A programme gains momentum."
model: "deepseek-chat"
---

## 🇮🇳 India Holds Out for Better Terms in US Trade Talks — Risk of Higher Tariffs Later This Month

India has **rejected a rushed trade agreement** with the US and is holding out for better terms, as PM Narendra Modi draws confidence from new trading partners, eased economic risks, and political gains at home, according to a **Reuters report published July 13**.

**What happened:**
- Months of talks failed to produce an interim trade pact during USTR Jamieson Greer's visit to New Delhi last month
- India demands: **(1)** tariff advantage over competitors like China, **(2)** guarantee against new US levies after the deal
- India refuses to cede ground on agriculture — a red line
- Trade Minister **Piyush Goyal** dismissed the Reuters report as "completely false, baseless and misleading" — but confirmed India wants a "clear advantage" from any deal

**Why India is emboldened:**
1. **US Supreme Court struck down Trump's sweeping 50% tariffs** in February 2026 — legal uncertainty favors India
2. **India's exports rose ~15%** in Apr-Jun despite Iran war disruptions
3. **UK FTA takes effect July 15**; **EU agreement** expected early 2027 — reducing dependence on US market
4. **Goldman Sachs raised India's 2026 growth forecast to 6.8%**
5. **Modi's recent state election victories** strengthen political hand
6. **Weaker rupee** improves export competitiveness
7. **22 Democratic state AGs** filed objections to Trump's proposed forced labor tariffs — India betting some US measures face legal setbacks

**The risk:** The Trump administration is expected to introduce **steeper tariffs later this month** through excess industrial capacity probes. India has denied the allegations. Washington has also proposed **12.5% additional tariffs on 44 countries** (incl. India) over forced labor allegations.

### Stocks to Watch (India Only)

| Stock | Impact | Reason |
|-------|--------|--------|
| TCS | 🔴 Negative (Inferred) | IT services — largest US revenue exposure among Indian IT; higher tariffs = client uncertainty |
| INFY | 🔴 Negative (Inferred) | IT services — significant US revenue; trade uncertainty delays deal-making |
| WIPRO | 🔴 Negative (Inferred) | IT — US revenue exposure; prolonged tariff uncertainty negative |
| HCLTECH | 🔴 Negative (Inferred) | IT — US revenue exposure; same tariff overhang |
| SUNPHARMA | 🔴 Negative (Inferred) | Pharma — US generics pricing already under pressure; additional tariffs could compress margins |
| DRREDDY | 🔴 Negative (Inferred) | Pharma — US generic exposure; tariff risk from forced labor investigations |
| CIPLA | 🔴 Negative (Inferred) | Pharma — US generic and OTC exposure |
| DIVISLAB | 🔴 Negative (Inferred) | Pharma intermediates; supply chain tariff risk |
| WELSPUN | 🔴 Negative (Inferred) | Textiles — directly exposed to 12.5% forced labor tariff proposal |
| TRIDENT | 🔴 Negative (Inferred) | Textiles — same forced labor tariff exposure |
| VARDHMAN | 🔴 Negative (Inferred) | Textiles — US export exposure to proposed tariffs |
| TATASTEEL | ⚠️ Neutral-but-watch | US accused India of excess steel capacity; potential anti-dumping/countervailing duty risk |
| JSWSTEEL | ⚠️ Neutral-but-watch | Same US excess capacity probe risk |

**Confidence: 4/5** — Reuters is highly credible. Both Indian officials and US sources confirmed the impasse. Piyush Goyal's denial is more about tone than substance.

---

## 🇮🇳 HAL Receives 7th GE Engine, 6th Cleared — Tejas Mk1A Programme Gains Momentum

**Hindustan Aeronautics Limited (HAL)** has received the **seventh GE F404-IN20 engine** from GE Aerospace for the Tejas Mk1A fighter, and the **sixth engine** — which had a minor technical issue — has been cleared for operational use after rectification.

**Key details:**
- 6th engine developed a snag during post-delivery inspection; GE Aerospace corrected it; HAL verified fitness
- 7th engine has now been delivered to HAL
- 99 engines contracted under ₹5,375 Cr deal with GE (2021)
- Tejas Mk1A programme remains **>2 years behind schedule**; MoD has warned HAL about financial penalties
- First batch of Mk1A fighters could be delivered **later this year** after IAF acceptance
- High-level review involving **Defence Minister Rajnath Singh**, Air Chief Marshal, and HAL CMD expected soon

### Stocks to Watch (India Only)

| Stock | Impact | Reason |
|-------|--------|--------|
| HAL | 🟢 Positive (Named) | Direct beneficiary — engine delivery = production acceleration; Tejas Mk1A deliveries imminent |
| BEL | 🟢 Positive (Inferred) | Provides avionics and radar systems for Tejas Mk1A |
| DATAPATTERNS | 🟢 Positive (Inferred) | Defence electronics sub-systems for LCA programme |
| APOLLOMICRO | 🟢 Positive (Inferred) | Defence electronics components for aerospace platforms |

**Confidence: 4/5** — Official India Today report citing MoD/HAL sources. Named HAL. Others inferred from supply chain.

---

## 📌 Summary

| Signal | Sector | Key Stocks | Direction |
|--------|--------|------------|-----------|
| India-US trade talks stall | IT Services | TCS, INFY, WIPRO, HCLTECH | 🔴 Negative |
| India-US trade talks stall | Pharma | SUNPHARMA, DRREDDY, CIPLA, DIVISLAB | 🔴 Negative |
| US forced labor tariffs 12.5% | Textiles | WELSPUN, TRIDENT, VARDHMAN | 🔴 Negative |
| HAL 7th GE engine cleared | Defence (Aerospace) | HAL, BEL | 🟢 Positive |