Trump's Policies May Open New Doors For India's Defence Sector: Report

(MENAFN- Live Mint) New Delhi [India], November 25 (ANI): The "America First" trade policy promoted by upcoming U.S. President Donald Trump has far-reaching implications for global trade and geopolitics.

According to a report by Motilal Oswal, this policy carries mixed outcomes for exporters worldwide because it is designed to prioritize U.S. manufacturing by reducing imports, particularly from China.

For India, Trump's policies present both opportunities and challenges. The Indo-Pacific defense strategy could strengthen U.S.-India collaboration, opening doors for Indian businesses in sectors such as pharmaceuticals and defense.

It said "Indian businesses in sectors such as pharmaceuticals and defense might also find new opportunities, especially if U.S.- India collaboration strengthens... Emerging markets face a mixed bag of challenges and opportunities".

Additionally, anticipated U.S. corporate tax cuts could boost IT spending, benefiting India's IT sector. However, a stronger dollar and potential tariffs on Indian exports could strain its trade balance.

Another significant concern is the impact of increased tariffs on U.S. exports. Key industries, such as agriculture and technology, risk losing competitiveness in global markets if trading partners impose retaliatory tariffs.

The report said "increased tariffs might prompt retaliatory measures from trade partners, potentially affecting U.S. exporters in sectors like agriculture and technology".

The report also highlighted that India may find a silver lining in global supply chain realignments, particularly in technology areas like AI and semiconductors, driven by the "China 1" strategy.

MENAFN24112024007365015876ID1108920842