New Delhi
With Donald Trump set to return as U.S. President, India might gain a stronger foothold in global supply chains, especially in technology sectors like artificial intelligence and semiconductors, according to a report on Saturday.
India’s earlier investments and strategies, such as the “China+1” policy, position it well to capitalize on shifting global dynamics. The report also suggests that potential U.S. corporate tax cuts under Trump could boost IT spending, offering opportunities for Indian IT firms.
Key industries like pharmaceuticals and defense could benefit from a stronger U.S.-India partnership, especially with a focus on Indo-Pacific defense strategies. Trump’s policies, however, present a mix of opportunities and challenges for emerging markets.
The “America First” agenda is expected to reshape international trade. By reducing reliance on imports, particularly from China, Trump aims to strengthen U.S. manufacturing. This could lead to higher costs for exporters, affecting sectors like IT and pharmaceuticals in countries like India. On the flip side, some nations, such as Mexico, may attract manufacturing shifts away from China.
Geopolitical tensions are also likely to rise, especially between the U.S. and China, pushing countries like Japan and South Korea to revisit their strategies. Similarly, the European Union may seek self-reliance and form new alliances outside the U.S. sphere of influence.
While India’s position could improve, Trump’s protectionist trade policies and their impact on Indian exports will require close monitoring in the months ahead, the report emphasized.
