Indian industry welcomes Trump’s victory, sees growth prospects for India-US ties

Trump’s victory: A boost for bilateral trade and investment between India and US?

Indian industry experts on Wednesday hailed Donald Trump‘s resounding victory in the US presidential election, expressing optimism about the positive impact his policies will have not just on the United States, but on the global economy, particularly in fostering stronger ties between India and the US. Industry leaders believe that with Trump at the helm, the India-US trade trajectory is poised to reach new heights, benefiting sectors ranging from technology to energy.

S P Sharma, Chief Economist and Deputy Secretary General at PHDCCI, described Trump’s victory as a “historic development” with significant implications for the global economy. The US, with a $30 trillion economy, remains the world’s largest economic powerhouse. Sharma emphasized that Trump’s return to office would be a catalyst for strengthening bilateral trade, which is expected to thrive under his leadership. “Our investment scenarios will expand to a new level as we have great expectations from Trump, who has always been in favor of bolstering bilateral trade,” he said. Experts are particularly hopeful about growing collaborations in sectors like energy, IT, and semiconductors, where Indian companies stand to benefit from increased opportunities for partnerships with US businesses.

The US is India’s largest trading partner, with total trade exceeding $190 billion annually. The two countries have also seen impressive growth in trade in services, which has expanded by 30.3% from $54.1 billion in 2018 to an estimated $70.5 billion in 2024. Indian goods, especially in sectors like technology, pharmaceuticals, textiles, and engineering products, continue to find a significant market in the US, and experts are optimistic that these sectors will see further growth under Trump’s leadership.

Jathin Kaithavalappil, Assistant Vice President at Choice Broking, believes Trump’s return to power will have broader global implications, particularly in strengthening US dominance in global markets. “A Trump victory will set the stage for renewed US leadership in global trade, with significant opportunities for India to capitalize on the ‘China+1’ strategy,” he said. Kaithavalappil highlighted that Indian sectors such as auto ancillaries could see substantial benefits, although Indian companies might need to consider investing in local operations in the US to fully tap into these opportunities.

On the energy front, Kaithavalappil added that Trump’s energy policies could lead to lower global oil prices, which would benefit energy-importing nations like India, helping to reduce input costs for Indian industries and ease inflationary pressures.

Prime Minister Narendra Modi also congratulated Trump on his victory, expressing his enthusiasm for renewing the collaboration between India and the US. In a statement, Modi reiterated his commitment to further strengthening the India-US Comprehensive Global and Strategic Partnership, adding that he looked forward to continuing close cooperation on key global issues.

Industry leaders are optimistic that Trump’s policies will provide a stable and favorable environment for expanding bilateral trade, enhancing investment flows, and accelerating cooperation in key sectors. The focus on manufacturing, energy, defense, and digital technologies is expected to offer Indian companies significant opportunities in the coming years.

With Trump’s policies likely to prioritize deregulation, tax cuts, and strategic partnerships with countries like India, there is widespread anticipation in the Indian business community that the next four years could mark a period of unprecedented growth in India-US relations, driving forward the economic collaboration that has already seen considerable success in recent years.

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