US President Donald Trump
Donald Trump has become the new head of the United States. Relations between India and Donald Trump are very good. Both Trump and Modi consider themselves good friends. Trump’s decisions are also favorable for India. His arrival to the presidency will also affect business in India and the United States under the government of Donald Trump. Defense relations with both countries can also be strengthened. In such a situation, please let us know what changes may happen in India after Trump’s victory.
Trump’s “America First” Strategy
With Donald Trump likely to become US president, if the new US administration decides to follow the US-first agenda, Indian exporters could face higher customs duties on goods such as vehicles, textiles and pharmaceuticals. Experts have expressed this opinion.
Experts said Trump may also tighten H-1B visa rules, which will affect costs and growth of Indian information technology (IT) companies. More than 80 per cent of India’s IT export revenue comes from the US, which will lead to changes in India’s visa policies. becomes sensitive to changes.
business impact
The United States is India’s largest trading partner. India’s annual trade with the United States amounts to more than $190 billion. Global Trade Research Initiative (GTRI) founder Ajay Srivastava said that after China, Trump can now impose tariffs on India and other countries. Trump first imposed large tariffs on India. In October 2020, India was considered the king of tariffs.
He said these comments suggest that Trump’s second term could bring difficult trade negotiations. Srivastava said his America First agenda will likely emphasize protective measures, such as reciprocal tariffs on Indian goods, which could potentially include cars and liquor. This could increase barriers to mainstream Indians. exports such as textiles and pharmaceuticals. This increase could make Indian products less competitive in the United States, which could affect revenues in these sectors.
However, he said the US’s tough stance towards China could create new opportunities for Indian exporters. Bilateral trade in goods between the two countries stood at $120 billion in 2023-24, while it was $129.4 billion in 2022-23. Biswajit Dhar said that Trump will increase tariffs in various sectors as he has to follow his MAGA (Make America Great Again) call.
impact on the electronic sector
Dhar said this can have an impact on sectors like electronics. He said that since Trump has already withdrawn from the Trans-Pacific Partnership (TPP), dark clouds may emerge over the IPEF (Indo-Pacific Economic Prosperity Framework). This 14-country bloc was launched by the United States and other countries in the Indo-Pacific region on May 23, 2022 in Tokyo.
Federation of Indian Export Organizations (FIEO) director general Ajay Sahay said we can expect Trump to push for more balanced trade. But trade disputes can arise over tariffs. Sahay said that given the growing trend towards protectionism, this trend will continue with stricter immigration rules.
