Donald Trump 2.0 may bring new opportunities; India better placed than China in trade with US: Experts

Donald Trump's Presidency of the United States volition unfastened caller opportunities for India though definite sectors, particularly pharma and IT, whitethorn look the vigor if the incoming president decides to enforce restrictions connected imports and H1B visa regulations, experts said connected Wednesday.

Prime Minister Narendra Modi's affable narration with Trump volition person a affirmative bearing connected Indo-US relations but India whitethorn person to accommodate its strategies to support practice successful areas of communal interest.

Former Niti Aayog Vice Chairman Rajiv Kumar said: "Trump's presidency tin beryllium a caller accidental for India. Trump volition enforce tariffs and import restrictions connected countries that helium thinks are not affable to the US, similar China and adjacent immoderate European countries, and this tin unfastened markets for Indian exports".

Barclays, successful a probe study connected Wednesday, said commercialized argumentation is wherever Trump is apt to beryllium "most consequential" for emerging Asia, which includes India and China.

"We estimation Trump's tariff proposals would subtract 2 per cent from China's GDP – and greater symptom connected the much unfastened economies successful the remainder of the region," Barclays said. The much domestically oriented economies, including India, Indonesia and the Philippines, would beryllium little susceptible to higher tariffs, it added.

Kumar said Trump volition spot India arsenic a affable country, and it tin expect larger investments by US firms into India. "...Overall, Trump's triumph is simply a precise affirmative improvement for the Indian economy," helium added.

Madras School of Economics Director NR Bhanumurthy said: "I doubt, Trump volition enforce tariff connected Indian products due to the fact that my ain feeling is that the interest for the US is not overmuch of India, but much of China. So, possibly determination would beryllium small quality successful the mode they are going to woody with India erstwhile compared to the mode they woody with China".

However, immoderate experts consciousness that his commercialized protectionist views could person immoderate antagonistic interaction connected India's exports and mightiness exert immoderate unit connected the rupee successful the abbreviated term.

Since Trump's protectionism doctrine of economics is good known, the process of globalisation whitethorn go much strategical and little just to emerging economies, including India, NIPFP visiting Professor Pinaki Chakraborty said.

The Trump medication is apt to bring renewed commercialized tensions, with imaginable adverse effects connected India's cardinal export sectors and superior inflows, said Client Associates manager (investment, probe and advisory) Nitin Aggarwal.

The economical outlook for India volition beryllium connected however rapidly the US system adjusts to the argumentation changes coming aft the Trump medication takes charge.

"For India, the consequences of specified a argumentation displacement could beryllium two-fold. First, definite sectors similar pharmaceuticals and IT whitethorn acquisition challenges. Indian generic cause manufacturers could look accrued tariffs connected their exports to the US.

Meanwhile, India's IT assemblage mightiness besides spot a slowdown successful demand, arsenic a commercialized warfare and its economical interaction could trim discretionary spending successful the US," Aggarwal said.