America Donald Trump has recorded a historic victory by defeating Kamala Harris in the presidential election held in 2017. Trump will become the president of the United States for the second time. Donald Trump’s tenure as the President of the United States is of great importance not only for the United States but for the entire world and India is also included in it. Trump’s mandate is also very important for India. If the new US administration under Trump’s leadership decides to pursue the ‘America First’ agenda, Indian exporters could have to face higher customs duties on automobiles, textiles and pharmaceuticals.
Trump may set strict rules regarding H-1B visa
Experts said Trump could also tighten rules for H-1B visas, which will affect the costs and growth of Indian IT companies. More than 80 percent of India’s IT export revenue comes from the United States, making India sensitive to changes in visa policy. The United States is India’s largest trading partner. India’s annual trade with the United States exceeds $190 billion. Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), said that after China, Donald Trump can now impose tariffs on India and other countries as well. Trump had earlier called India a “big tariff abuser” and in October 2020 had called India a “tariff king.”
Trump’s agenda can create problems for many sectors of the country
“His America First agenda will likely emphasize protective measures, such as reciprocal tariffs on Indian goods, which could potentially raise barriers to key Indian exports such as automobiles, liquor, textiles and pharmaceuticals,” Srivastava said. “These increases could make Indian products less competitive in the United States, which would affect revenues in these sectors.” However, he said the US’s tough stance towards China could create new opportunities for Indian exporters.
Fear of a commercial dispute over rights
Bilateral trade in goods between the two countries stood at $120 billion in 2023-24, while it was $129.4 billion in 2022-23. International trade expert Biswajit Dhar said that Trump will increase tariffs in different sectors as he has to follow his call to “Make America Great Again”. “With Trump coming to power, we will enter a different era of protectionism,” Dhar said, adding that sectors such as electronics could be affected. Federation of Indian Export Organizations (FIEO) director general Ajay Sahay said: “We can expect Trump to push for more balanced trade. “But trade disputes may arise over tariffs.”
With PTI inputs
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