Following the recent trade agreement between the US and India, investment bank Jefferies pointed out in a newly released report that this move will reshape the global supply chain landscape and bring a significant profit boost to the retail industry. The core of the agreement reportedly lies in resolving long-standing tariff disputes, slashing US import tariffs on most Indian goods from a punitive high of 50% down to 18%, while India has committed to lowering trade barriers for specific US goods and increasing purchases of American energy, agricultural products, and manufactured goods. A key condition is India's commitment to gradually phase out Russian oil purchases and shift a substantial portion of its energy procurement to the US and certain US-aligned suppliers. Both sides indicated that this partial agreement alleviates tariff tensions, though deeper structural issues will be left for subsequent negotiations to resolve. Jefferies analysis suggests this change not only enhances India's competitiveness in labor-intensive industries like textiles, leather, gems, and jewelry, surpassing rivals like Vietnam and Pakistan, but also directly alleviates cost pressures for US importers, further solidifying India's status as a "China-plus-one" alternative supply base. Regarding specific industry beneficiaries, Jefferies analyst Randal Konik emphasized that diamond and jewelry retail giant Signet Jewelers (SIG.US) is one of the biggest winners of this policy dividend, primarily because approximately half of its natural and lab-grown diamond inventory is sourced from India; the sharp tariff reduction will directly translate into an expansion of its gross margin. According to Jefferies estimates, Signet Jewelers' weighted average tariff impact has been roughly halved from 29.6% to 15.1%. Simultaneously, discount retailer Five Below (FIVE.US), fashion e-commerce platform Revolve Group (RVLV.US), and sports apparel leader Nike (NKE.US) were also listed as core beneficiaries. With lower procurement costs, these companies with mature Indian supply chain networks are demonstrating stronger competitive advantages in market pricing and profit certainty. From a macro supply chain perspective, several strategic industries within India are entering an unprecedented period of export advantages. Textile leaders like Welspun Living, alongside auto parts manufacturers such as Sona Comstar and Bharat Forge, are accelerating their penetration of the US market leveraging the tariff benefits. Jefferies further noted that beyond traditional manufacturing, due to a more transparent trade environment and optimized cost structures, the solar manufacturing, chemicals, and Electronics Manufacturing Services (EMS) industries are also poised for robust growth potential.