Alarming Bells For Indian IT

Higher US taxes could make Indian products less competitive in the US, impacting revenue in these sectors. However, a tougher US stance on China could create new opportunities for Indian exporters -- Ajay Srivastava, founder, GTRI

New Delhi: With Donald Trump all set to become US president, Indian exporters may face high customs duties for goods like automobiles, textiles and pharmaceuticals if the new US administration decides to pursue the ‘America First’ agenda, opined trade experts.

Experts also said that Trump could also tighten H-1B visa rules, impacting costs and growth for Indian IT firms. Over 80 per cent of India’s IT export earnings come from the US, making it vulnerable to changes in visa policies. The US is India’s largest trading partner, accounting for over $190 billion of annual trade. GTRI Founder Ajay Srivastava said that Trump may extend tariffs beyond China to include India and other countries.