Impact of Donald Trump’s win as U.S President on India:
Loss if India:
*Trump labels H1B visa programme as ‘unfair’ and his stated purpose is to end the programme. Indian IT stocks and IT companies like TCS and InfosysBSE -1.80 % are likely to be the first victims of this policy.
*Trump’s ‘hawkish’ trade policy of ‘America first’ and his plans to renegotiate all foreign trade deals will affect trade treaties with India, too.
*His plan of bringing jobs back to America could mean harsher conditions for entry of immigrants from India.
*Trump’s promise to reduce the US corporate tax rate from 35 per cent to 15 per cent could result in companies like Ford, GM and Microsoft going back to the US.
Gains of India:
*The return of US firms will hit Modi’s Make in India plan.
*Although Trump wants to put stricter immigration rules, he also says he wants to woo Indian entrepreneurs and students to the US.
*Trump criticised China throughout his campaign, described it as one of the US’s top adversaries. That could make for an advantage to India.
*He said he would label China a currency manipulator and impose heavy tariffs if China didn’t agree to rewrite trade agreements.
*He labelled Pakistan as semi-stable and a safe haven for terrorists. This could mean the continuation of US’ Pivot to Asia policy where India is seen as a counterbalance to China.
*Trump’s hard stance on terrorism could also result into deeper Indo-US defence and strategic ties.
*And finally, closer defence ties might give a further push to Indo-US business ties as well.
Courtesy: The Economic Times