How Will Trump 2.0 Impact The Indian Economy?

Donald Trump is back again as the 47th President, marking a historic comeback after he left in 2021. In fact, his victory came after a contentious campaign where he secured 270 electoral votes by winning key states.

After his win, he is preparing his new cabinet, influencing various aspects. Same questions for India. If we talk about it in detail, his second term is expected to have a mixed impact on the Indian economy.

On one hand, Trump's policies could lead to slower growth, currency volatility, and higher borrowing costs for India. However, India may also benefit from global supply chain shifts, with key sectors like IT, pharma, and manufacturing positioned to gain.

With benefits, Trump's America First policy may lead to various challenges, such as higher inflation, interest rates, tariffs, and tax cuts.

Thus, according to experts, monitoring the implementation of Trump's plans and international responses will be essential in setting the economic and market trajectories in the following year.

So, for the time being, it’s true to say that his winning is going to bring both opportunities and concerns. However, time will tell what it’s going to be like.