Finlance-Logo
Contact Us
Finlance-Logo
Contact Us

Thought Centre

The Trump Effect and Indian Exports Opportunities

Who rules the Arena of Exports to USA?

Arena-1
  • USA-world’s largest importer believes that imports increase consumer choice, keeps prices low, raises the purchasing power, provides high quality inputs for the domestic businesses to be dynamic and competitive in the foreign markets. With dollar being strong, there are cheaper imports.
  • USA-the second largest manufacturing country, imports because it re-allocates labour-intensive tasks to countries associated with low labour costs, and in return supports the import of those manufactured intermediate goods by levying low duties.
  • Goods Imports are more than services as it holds a strong expertise in service sectors like finance and technology. Major trading partners with the USA accounted for more than one-third of the total imports, due to their integrated economy and competitive pricing.
  • The era of tariff-war, Canada & Mexico may closely monitor developments in US-China trade relations, adjust their marketing strategies to take advantage of growing opportunities in China. China should explore new markets to mitigate the tariff risks.
Arena-2

Top Merchandise Exports to USA in 2024 by major trading partners

Partner-1
Partner-2
Partner-3
Partner-4

According to United Nations COMTRADE database, in 2024, United States imported $531.15 billion worth of Machinery, Nuclear Reactors Boilers out of which $228.37 billion was from Mexico, China, Canada and India, (appx. 43%).

Other major import has been of electrical equipment from China, Mexico and India , appx. 47% of the total imports of this product.

Positive “TRUMP” Effect on Indian Exports to USA?

Effect
  • Over the last decade, India’s bilateral goods trade surplus with the USA has been 1% of India’s GDP, largely driven by export of Pharmaceutical and Electrical products. The “reciprocal tariff” plan is likely to effect the GDP between 0.1-0.6%.
  • India has the potential to be a global manufacturing powerhouse by 2030, with a potential export of US $ 1 trillion. About 83% of manufactures expect an increase in orders, mainly from industries of capital goods, electronics (the main exports from China, Mexico and Canada) and pharmaceuticals.
  • Combining the triangular pyramid of – USA already having expertise in service sectors, the growth of export of services is more than that of merchandise and the ongoing tariff war –

Can India effectively and efficiently utilise its manufacturing capacity and market its strategies advantageously by closely monitoring the trade developments of USA with China, Canada and Mexico?

Read More Blogs

Multi Asset Funds Investment Strategy

Multi Asset Funds Investment Strategy

Multi-asset fund combines equities, bonds, silver and international securities, within a single portfolio; a structured

June 10, 2025
Gold vs Equities

Gold vs Equities

Historically, during Indian economic downturns equities fall out of favour while gold, which is generally

June 6, 2025
FII vs DII in Indian Equity Market

FII vs DII in Indian Equity Market

It’s been a tough couple of months for the Indian Equity market as form its

June 6, 2025