Donald Trump returns: Cheaper energy, better exports... - What could India gain | VIDEO

Trump’s return to White House: As Republican Donald Trump returns to power as the President of the world's biggest economy after his historic win over Kamala Harris, India Inc is eyeing new opportunities in the land of the free. 

As India and the United States mark 25 years of strengthened bilateral ties, Trump's relationship with Prime Minister Narendra Modi promises to add momentum to the partnership. 

Trump’s presidency could have significant implications for India, spanning trade, energy, manufacturing, and defence. 

Trump’s regime to boost Indian trade

Trade relations could experience shifts as Trump’s protectionist stance influences global tariffs. While his policies on higher tariffs target China, there could be indirect benefits for India’s ‘Make in India’ programme. 

Indian companies may find new market opportunities in the US, given the tariffs on Chinese goods and the likely shift in global supply chains. Additionally, Indian exporters, particularly in manufacturing, may capitalise on increased demand for alternative sources in American markets.

Energy companies eyeing Trump’s return

The energy sector could also stand to gain. Trump’s policies on energy security and possible easing of trade restrictions could provide Indian oil companies with more affordable options and potentially stabilise energy costs. 

India, which has benefitted from sanctions on Russia through secondary trade, may continue to see advantages under Trump’s administration, especially if the US pursues similar foreign policy alignments.

Focus on defence

In defence, Trump's presidency is expected to accelerate collaborative projects and investments in the sector, building on recent agreements between the two nations. This would offer India a chance to diversify its defence procurement away from its reliance on Russia, with potential for American defence technology and capital investment. 

Indian and American companies could see shared benefits in a defence sector aimed at self-reliance and enhanced production capacity.

The domestic markets have already reacted positively to Trump’s election, reflecting optimism that his presidency may favour economic policies supportive of investment and growth. 

With Modi and Trump’s close rapport, India looks poised to gain from an administration that is likely to prioritise strategic partnerships, economic engagement, and a resilient bilateral relationship.