 |
|
The potential return of Donald Trump to the White House could bring significant benefits to India, according to a report by Moody's, the global ratings agency. This optimistic outlook stems from the anticipated shift in global trade and investment patterns, potentially diverting flows away from China due to heightened US scrutiny in strategic sectors. This shift, while potentially detrimental to China's economy and regional growth, could create new opportunities for nations like India and those within the Association of Southeast Asian Nations (ASEAN).
Moody's report highlights key areas where Trump's policies could positively impact India's economic prospects. The report notes the potential for a reallocation of trade and investment away from China, opening up new markets and opportunities for Indian businesses. Moreover, Trump's focus on tax reforms, including permanent tax cuts and corporate tax rate reductions, could encourage greater investment in India and stimulate economic growth. Additionally, the report acknowledges the possibility of higher taxes on Chinese imports, which could benefit Indian exporters and strengthen their competitive edge in the global market.
However, the report also outlines potential downsides to Trump's presidency for India. The anticipated protectionist trade policies under the Trump administration could disrupt global supply chains and negatively impact sectors reliant on imported materials and goods, such as manufacturing, technology, and retail. Furthermore, Trump's reversal of climate change policies, including a potential withdrawal from the Paris Agreement and increased fossil fuel production, could undermine India's own efforts towards sustainable development. These policy changes could also have implications for international cooperation on climate change mitigation and adaptation.
Source: India to gain from Donald Trump’s presidency, expects Moody’s