With the U.S. presidential election set for November 5, investors worldwide, including those in India, are watching closely. If Donald Trump wins, there could be big changes for Indian businesses – some positive, some negative. PhillipCapital, a global financial services company, has shared insights on what Indian industries might expect.
Trouble for Indian IT Companies?
If Trump wins, Indian IT companies might face some problems. Trump has always pushed for stricter immigration rules, which means it could be harder for these companies to send employees to the U.S. However, many Indian IT companies have already started hiring more locals in the U.S., using subcontractors, and opening new centers closer to America to lessen the impact.
Good News for Energy, Defence, and Metals
Energy: Trump’s focus on fossil fuels, like oil and natural gas, could mean the U.S. produces more of them. If oil prices drop, this could help Indian oil refiners and consumers save money.
Defence: Trump’s firm stance on China aligns with India’s interests. If he wins, India and the U.S. may get even closer on defence, speeding up new partnerships in military technology.
Metals and Commodities: Trump’s plans to boost U.S. infrastructure could mean higher demand for metals, which would benefit Indian metal and pipe manufacturers.
Impact on Indian Auto and EV Parts
If Trump becomes president again, he might reduce support for electric vehicles (EVs), which could lower demand for EV parts from India. But this could also mean a switch to hybrid cars instead, keeping some demand stable for Indian auto part suppliers.
Trump also wants to focus on building infrastructure in the U.S., especially bigger vehicles like Class 8 trucks. This could mean new business for Indian auto component makers who supply parts for these trucks.
More Opportunities for Indian Textiles, Consumer Electronics, and Manufacturing
Trump has criticized China in the past and could push for higher tariffs on Chinese goods. This might give Indian products like textiles, consumer electronics, and auto parts an edge in the U.S. market. As American companies look for alternatives to China, India could become an attractive option for foreign investors, opening up more factories and manufacturing hubs in India.
Trump’s Bond with PM Modi
During his previous term, Trump and PM Modi had a close friendship. Trump visited India in 2020, where PM Modi welcomed him at a huge rally called “Namaste Trump” with over 100,000 people. The two leaders have praised each other, which could help smoothen business relations between the two countries if Trump wins.
The Bottom Line
If Donald Trump wins, Indian businesses might face challenges in areas like IT and EV parts, but see growth opportunities in energy, defence, metals, and consumer products. Investors and companies in India are watching these developments closely, as a Trump win could bring both risks and rewards for different industries
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