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What does the victory of Donald Trump in USA means to India


The most awaited US Presidential elections concluded in November 2016 with Mr. Donald Trump emerging victorious over Ms. Hillary Clinton proving all pre poll surveys wrong. Mr. Donald Trump became the 45th President of US. The impact of Mr. Donald Trump leadership is to be felt all over the world. This essay will critically examine the impact of Mr. Donald Trump president ship on India.

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US - Strong Ally to India in International scenario

Mr. Trump openly supported Hindus in India and spoke in favor of Hinduism in his election campaigns. In turn, Hindus in India especially Maharashtra performed rituals for the victory of Mr. Donald Trump. Indian Prime Minister Mr. Modi congratulated Mr. Trump for his victory and said that India - US bilateral ties will enhance further.

Donald Trump openly criticized Pakistan for providing shelter to Osama Bin Laden for six years. He showed his aversion to Pakistan declaring it as a terrorist country and only India can check it. Trump in one of his radio campaigns called Pakistan as the most dangerous country in the world. In this manner, Trump gets the full support of the Indians. These incidents indicate that US under the leadership of Trump will be a strong ally of India. Trade and exports will enhance between the two nations to a great extent in the near future.

India - US trade exports likely to boost

Mr. Donald trump has taken an anti-China stand and termed China as a "Currency Manipulator". The exports of China to US stood at more than $400 billion on Computers, Telecommunication and Mobile Equipments. This figure is likely to come down with Trump planning to lodge a complaint in WTO against China to cut down its subsidies in trade.

India will get an opportunity if US stops importing from China. This might see an increase in Indian exports to US. Currently, India exports Pharma products to US accounting to $65 billion annually. The aversion of Trump towards China might open up the Indian exports considerably in the Telecom and computer segments.

Generating employment to US Citizens - First Priority of Mr. Trump

Mr. Donald trump aims at boosting the US economy and reach the 4% GDP target growth rate by providing more than 25 million jobs in the next ten years. Mr. Donald trump in his election campaigns has lashed out at the Mexicans, Chinese, Indians and other nationals for stealing the jobs of US citizens. Mr. Donald Trump has recently made strict restrictions on the H1B working visas. This indicates that the outsourcing sector and IT sector will see the participation of more US citizens and preference will be given to them. This leaves immigrants at stake. This will be the first area of concern for Indians working in US.

Mr. Donald Trump is a hard core business man and wants to attract all the US businesses back to the home by cutting the corporate tax rate from 35% to 15%. In this manner, Trump aims to generate more employment to the US citizens. This is yet another drawback for India with most of the US businesses in India shifting back to US. Foreign Direct Investment (FDI) from US will see a huge cut and downfall as a result of this measure.


The above analysis clearly indicates that India is going to benefit for sure from the bilateral agreements between US and India in various sectors. Trade and exports to US from India will enhance to a great extent. Indians in US are likely to lose jobs with some more restrictions on outsourcing. This might impact the ITES companies and employees working in BPO sector in India. The real implications of Trump government will be revealed only in the due course of time. The recent withdrawal of US from Trans Pacific Partnership contributing to more than 60 percent of world Trade indicates that US is moving towards self-sufficiency and will be focusing on internal growth of US. His open declaration of making US stronger will depend upon the reforms to be introduced once he assumes charge at White House.

- Durai