What it means to India

metro india news  I hyderabad

In his second sojourn and on his first day in office, President Donald Trump signed a series of executive orders, 80 to be precise including delaying TikTok ban, issuing pardons for January 6 Capitol rioters, declared a national emergency to expedite the development of fossil fuel infrastructure that includes to replenish strategic reserves, increase energy exports, cease federal leasing for wind farms, withdraw from the Paris Climate Agreement, halt federal DEI initiatives, promoting a return to merit-based treatment and address illegal immigration to name a few.

How will the executive orders impact India?  President Donald Trump's executive orders have had and are likely to continue having several impacts on India, particularly in areas like trade, immigration, and international relations. Here's a detailed look at some of these effects:

Trade and Economic Relations

Tariffs and Trade Disputes: Trump's administration has historically been protectionist, with a focus on reducing trade deficits. In his first term, Trump imposed tariffs on steel and aluminum, which directly impacted India as it is a significant exporter of these materials to the U.S.

The withdrawal of the Generalized System of Preferences (GSP) for India in 2019 led to the loss of duty-free access for about $6.3 billion worth of Indian exports to the U.S. If Trump continues this approach, India might face increased tariffs, which could affect sectors like automobiles, textiles, pharmaceuticals, and wines, making Indian exports less competitive in the U.S. market.

Trade Negotiations: Trump's push for bilateral trade agreements on more favorable terms for the U.S. could lead to tension with India's "Make in India" initiative, which aims to boost manufacturing within the country. This might result in negotiations where India could be pressured to reduce its tariffs on American goods.

Immigration Policies

H-1B Visa Restrictions: Trump's stance on immigration, specifically his policies on H-1B visas, has directly impacted Indian IT professionals who form a significant portion of the workforce in the U.S. under this visa category.  Stricter regulations and potential reductions in the number of visas issued could affect Indian IT companies' operations in the U.S., leading to increased costs due to higher local hiring or potential revenue loss.

Birthright Citizenship

Trump's executive order to end birthright citizenship could impact Indian families in the U.S., particularly those awaiting green cards. 

This policy would deny automatic U.S. citizenship to children born to non-citizen parents, even those legally residing in the U.S., affecting long-term planning for many Indian families.

Geopolitical and Strategic Relations

Transactional Relationship: The Trump administration's approach to foreign policy is often characterized as more transactional. 

This could mean that while India and the U.S. continue to cooperate on significant issues like countering China in the Indo-Pacific, India might need to offer more in terms of strategic or economic concessions to maintain this partnership.

Support for Domestic Initiatives

There could be a shift in U.S. support for initiatives like "Make in India" if they do not align with immediate U.S. economic interests. However, high-profile engagements at the leader level are expected to continue, providing some stability to the relationship.

Environmental and Technological Cooperation

Renewable Energy and Climate: Trump's skepticism towards climate change policies could impact cooperation in renewable energy sectors. Tariffs on green goods could hinder India's momentum in solar exports to the U.S., affecting clean energy initiatives.

Overall, while there are areas where India and the U.S. align strategically, Trump's executive orders and policies tend to introduce volatility and unpredictability in trade and immigration, which could pose challenges for India. However, the relationship has also shown resilience due to mutual interests in security and countering regional threats.