India’s Policy Realignment and U.S. Trade Overhauls Poised to Boost Technology Shares by 2025

Indian Tech Stocks Poised for Growth Amid Strengthening U.S.-India Trade Relations

Recent advancements in trade discussions between the United States and India are expected to drive substantial growth in Indian technology stocks by 2025. Market experts anticipate a notable increase in demand for Indian tech companies, fueled by the country's expanding global trade presence and supportive government policies aimed at boosting technology exports.

According to a report from SBI, India is undergoing a significant transformation in its export strategy. Merchandise exports saw a 2.9% year-over-year rise during April to September 2025, with Indian businesses increasingly tapping into markets such as the UAE, China, and Vietnam. This diversification, combined with government-backed credit guarantees and new trade agreements, is creating fresh opportunities for Indian technology firms to meet rising international demand.

Strong Corporate Performance Highlights Sector Potential

Kaynes Technology India Ltd's recent quarterly results exemplify the sector's upward trajectory. The company achieved a remarkable 58.40% increase in revenue compared to the previous year, reaching ₹906.22 crore, while net profit soared by 101.64% to ₹121.41 crore. These figures underscore the robust appetite for Indian software and IT services worldwide. In contrast, Ducon Infratechnologies Ltd experienced a 5.40% decline in quarterly revenue to ₹112.90 crore, but still managed to record a 1.95% year-on-year growth in net profit, demonstrating the industry's resilience despite global economic headwinds.

Policy Support and International Partnerships Fuel Momentum

The evolving U.S.-India trade framework is set to further accelerate this momentum by easing regulatory hurdles and promoting collaborative innovation. The SBI report highlights India's strategic emphasis on high-value exports, such as semiconductors and software, which aligns with the U.S. pursuit of secure and diversified supply chains. Initiatives like the ₹45,060 crore credit guarantee scheme are also helping technology firms access the capital needed to expand and compete on a global scale.

Industry analysts point out that recent strategic agreements, including those in the LPG and defense sectors, are fostering a more favorable environment for technology exports. These collaborations not only boost India's profile in international trade but also attract foreign investment into the country's tech ecosystem. SBI's "Ecowrap" analysis notes that while India's share of U.S. exports is projected to decrease to 15% by September 2025, the country's pivot toward emerging markets will help offset risks and maintain growth momentum.

Outlook: A Promising Future for Indian Technology Stocks

Looking forward, the intersection of trade policy reforms and sector-specific expansion is expected to propel Indian tech stocks to new heights. As U.S. companies seek alternatives to established supply chains and Indian technology firms continue to demonstrate their ability to scale, the stage is set for significant market gains in 2025.