By Safe Investment August 7, 2025
Saurabh Mukherjee of Marcellus Investment Managers believes that a trade agreement can be reached between India and the US soon. There is no need to worry about tariffs. The US needs India in sectors like electronics and pharmaceuticals. Therefore, India's position is strong. According to Mukherjee, a fall in the market is an opportunity to buy.
New Delhi: Saurabh Mukherji, founder of Marcellus Investment Managers, has said something big. According to him, India and the US are expected to reach a trade agreement in the next few months. There is no need to worry about tariffs. His prediction is very important in many ways. Especially considering that US President Donald Trump has announced a 25% tariff on India. He has also expressed displeasure with India over the purchase of Russian oil. According to experts, despite this, India's position is very strong. Although the US has imposed a 25% tariff on India, it is unlikely to affect India's important exports like pharmaceuticals, electronics and IT. He indicated that this entire drama is an attempt to put pressure on India so that a more favourable deal can be made in favour of the US.
Saurabh Mukherji discussed the current situation in a conversation with NDTV Profit. He argues that the US needs India in two main areas. These include electronics and pharmaceuticals. Companies like Apple are increasing manufacturing in India. America wants to reduce its dependence on China for the supply of its pharmaceutical ingredients (APIs). India is a strong option for this.
Important exports will not be affected
Mukherjee believes that any fall in the market should be seen as an opportunity to buy. His firm is investing according to this strategy. He says that countries like Vietnam cannot be an alternative to India for America. The reason is that they do not have the capacity to produce on a large scale.
According to experts, the 25% tariff hike by the US will not affect India's important exports like pharma, electronics and IT. Only some sectors like textile and auto will be affected limitedly. He said, 'Even if this 25% tariff is implemented, pharma, electronics and IT are likely to get complete exemption.
Attempts to put pressure on India
Marcellus believes that any kind of decline in the market is a good opportunity to buy. He said, 'If the shares of companies like Sona Comstar or Divis Labs fall, then we will think about buying more.' His firm's global strategy is to take advantage of the decline in the market after the US tariff threats. He jokingly calls it TACO i.e. 'Trump Always Chickens Out' trade.
Mukherjee said that apart from tariffs, America needs India very much in two important sectors like electronics and pharmaceuticals. According to him, Apple is a star player. It is very important for Apple to increase manufacturing in India.
According to Mukherjee, America is putting pressure to open India's markets for American agricultural and dairy products. India has been opposing this matter for a long time. Still, he is confident that an agreement will be reached in the next few months.
Marcellus is also preparing accordingly. The firm's small-cap portfolio includes Divis Labs and Acutus (formerly Ami Organics). In the electronics space, Mukherjee said he is eyeing companies like Dixon. "If EMS (Electronics Manufacturing Services) becomes cheaper because of Trump, that's even better. He will look to buy," he said.
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