How Donald Trump's victory can benefit India?

In a significant statement, External Affairs Minister S. Jaishankar highlighted the potential advantages for India following Donald Trump's return to the White House. Speaking to CEOs and business leaders in Sydney, Australia, Jaishankar emphasized that the re-ordering of global supply chains is expected to accelerate post-Trump's victory.

"There was already a re-ordering of supply chains. It is very likely that this would accelerate in view of the election results [in the US]. Some of it may be disruptive ... but India perceives it as an opportunity," Jaishankar stated. He underscored that India, having missed the manufacturing boom of the 1990s and early 2000s, now has a "second bite of the Apple" to attract manufacturing away from China.

Jaishankar also highlighted immigration and mobility as one of India’s top three priorities. He noted, "Even the US under Trump will make a distinction for immigration and mobility… economically justified mobility will have to be managed." This, he said, is essential as the global workplace becomes increasingly integrated.

Trump decisively defeated his Democratic rival Kamala Harris in the US presidential elections on November 5. This victory is seen as a potential catalyst for funds flowing into India and Japan, according to a Bloomberg report. Investors are optimistic about Trump’s anti-China stance, which could benefit India, a key manufacturing alternative to China.

Mark Mobius, a veteran emerging-market investor, told Bloomberg, "Supply chains have been moving away from China and that helps not only Japan and India but also other countries, particularly in Southeast Asia. India is the big beneficiary since only India’s workforce can match the Chinese in numbers and labor costs. With Trump maintaining or even extending trade restrictions on China, this will be positive for India."

Following Trump's victory, Prime Minister Narendra Modi spoke to him over the phone, congratulating him on his return to the White House. In a statement, the Ministry of External Affairs (MEA) said that both leaders have "reaffirmed their commitment" to strengthening bilateral ties across various sectors. Modi also posted on X (formerly Twitter) about his "great conversation" with Trump, referring to him as a "friend."

The statement further mentioned that both leaders reiterated the importance of the India-US Comprehensive Global Strategic Partnership for the "benefit of the people of the two countries as well as for global peace and stability."

India sees the current global disruptions as an opportunity to enhance its economic and strategic standing, leveraging the shifts in global supply chains and the evolving geopolitical landscape.