New Delhi (Staff Correspondent), November 09: Republican leader Donald Trump’s top priorities for another term as the president of the United States evoke memories of his previous “America First” strategy but have significant implications for economies and governments elsewhere in the world, including India.
Here’s where his new proposals might converge with Indian interests and challenges:
1. Immigration and Workforce Dynamics
Donald Trump’s immigration policies, such as mass deportations and taking away work permits from undocumented immigrants, will indirectly touch the Indian diaspora in the United States. Whereas India is not a typical source of unauthorized immigration, the above measures will make the environment more challenging for all the migrants, and this community includes significant proportions of Indian workers, particularly H-1B visa holders.
His earlier government attempted to limit the norms governing visas, and that could happen once again, further limiting access to US markets for Indian IT professionals and technology firms.
2. Economic Policies and Trade Tariffs
Trump’s policy of hefty import tariffs on all imported products into America, including China, seems to fulfill his long-time goal of reducing America’s trade deficit.
Opportunity and danger may both lie in this for India :
Opportunities
India can capitalize on becoming an alternative to China as a source for manufacturing and export to the US, riding the high geopolitical tensions between the US and China.
Challenges
A blanket tariff on all imports will also impact Indian goods, be it textiles or pharmaceuticals because it will make the country less competitive in the US market.
Second, “reciprocal trade policies” imposed by Trump could put a leash on India to revisit its tariff structures on American goods, which have been the sticking point of bilateral trade talks.
3. Technology and Investment Restrictions
The new Trump-proposed ban on investments of US companies in Chinese firms and vice versa may divert attention to other economies and that could be India. That might prompt the growth of US investments in India’s booming tech industry as an alternative to China. There, however, India needs to tread cautiously so as not to lose its regulatory appeal to the US investors yet maintain strategic autonomy.
4. Global Geopolitical Dynamics
Trump’s aggressive policies toward China-including phasing out Chinese imports- may redraw global supply chains. India already positions itself as a hub for global manufacturing under the initiative “Make in India”. But such shifts can fuel global trade tensions and destabilize markets where India has an interest.
His previous administration’s defense and security partnerships may make a comeback. More robust Indo-US cooperation on defense, intelligence sharing, and counterterrorism may also resurface under a Trump administration, given joint concerns over China’s aggressive actions in the Indo-Pacific region.
5. Energy and Environment.
Focusing on energy independence and deregulation, Trump is at odds with India, which has been making climate commitments. His withdrawal from the Paris Agreement in his first term sends a signal with regard to climate cooperation globally, showing less emphasis.
If the US opted for unilateral energy policies under Trump rather than cooperative frameworks, a more complex balancing act of its energy needs in relation to climate goals might lie on the horizon for India.
Conclusion.
Though it is still largely reflective of his domestic agenda, Trump’s top priorities have unmistakable implications for other global economies, one of which is India. What is at issue here is the question of how the policy framework set by Trump in the United States affects India.
India will have to contend simultaneously with opportunities and challenges as it looks to strengthen economic ties with the United States when its relationship with that superpower is rapidly changing. India would undoubtedly seek to leverage its influence during a reordered New International Order, but it cannot also jeopardize economic interests during this restructuring process.
