With Donald Trump set to become the US president, Indian exporters may face challenges due to potential changes in trade policies. Experts suggest that the 'America First' agenda could lead to higher customs duties on goods like automobiles, textiles, and pharmaceuticals. Additionally, stricter H-1B visa rules may impact Indian IT firms, as a significant portion of their revenue comes from the US market.
The US is India's largest trading partner, accounting for a substantial portion of annual trade. Trade experts predict that Trump's second term could bring tougher trade negotiations, potentially extending tariffs to include India and other countries. This could create barriers for key Indian exports and make them less competitive in the US market. However, a tougher stance on China could open up new opportunities for Indian exporters in other sectors.
As Trump aims to boost domestic manufacturing and prioritize American interests, sectors like electronics may face challenges. The withdrawal from international trade agreements like the Trans-Pacific Partnership could also impact regional economic frameworks like the Indo-Pacific Economic Framework for Prosperity. With the increasing trend of protectionism, trade disputes and tighter immigration rules are expected to continue.
In light of these potential changes, Indian exporters may need to explore alternative markets or retaliate with their own tariffs on US exports. Strategic planning and negotiations will be crucial to safeguarding India's interests while adapting to the evolving trade landscape. It remains to be seen how the Trump administration's policies will impact India's export sector and overall economic relations with the US.