U.S. Trade Deal Lifts India’s Renewable Energy Stocks

No image 5paisa Capital Ltd - 1 min read

Last Updated: 13th February 2026 - 10:59 am

Summary:

India’s renewable energy stocks advanced after the U.S.-India trade agreement reduced tariffs on Indian goods. 
Solar exporters were among the top global gainers following the announcement, reversing earlier losses. Lower tariffs are expected to improve access to the U.S. market, which accounts for the bulk of India’s solar module exports.
 

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Renewable energy shares moved higher after the trade framework with the United States was unveiled last week. Several Indian clean power companies ranked among the top performers on a Bloomberg global sector gauge.

Shares of Insolation Energy and Oriana Power rose more than 24% in February, recovering most of the losses recorded in January. The rally followed confirmation that tariffs on Indian goods would be reduced to 25%, with a further cut to 18% under the interim arrangement.

Tariff Reduction Reopens Key Export Market

The revised tariff structure lowers the cost burden on Indian exporters seeking access to the U.S. market. The United States has been India’s primary destination for solar module exports, accounting for 97% of shipments in the first half of 2025.

Higher levies had earlier raised concerns over export viability. The reduction is seen as restoring competitiveness relative to regional peers and easing pressure on domestic manufacturers facing supply concerns and pricing competition.

Sector Faced Earlier Headwinds

Renewable companies had faced challenges, including concerns over a solar supply glut, pricing competition from overseas producers and delays in transmission infrastructure build-out. Despite these pressures, expansion plans have continued to align with India’s target of expanding clean power capacity to 500 gigawatts by 2030.

Valuation Remains Elevated

Some renewable companies continue to trade at elevated valuation multiples relative to global peers, according to data compiled by Bloomberg. The recent rally follows a period of underperformance earlier in the year.
Market participants are assessing the sustainability of the rebound as tariff clarity improves export visibility for the sector.

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