Trump Presidency Favorable for India: Nomura Report

A report by Nomura suggests that India's economy could benefit from Donald Trump's policies if he wins the US Presidential election. Despite potential frictions in trade and immigration, India's domestic demand-driven growth, low commodity prices, and strategic importance as a counterweight to China make it well-prepared for any volatility.

According to a global market research report by Nomura, a victory for Donald Trump in the US Presidential election could prove beneficial for India. The report suggests that India's economy stands to gain from Trump's policies, especially given its domestic demand-driven growth model and advantages in lower commodity prices, supply chain shifts, and foreign policy.

Despite potential changes in trade and immigration policies under a Trump presidency, the report emphasizes that economic and strategic ties between India and the US are likely to remain solid. The US views India as a strategic counterweight to China, and India's large, domestic demand-driven economy will likely shield it from negative impacts of weakened US economic growth.

While any trade and immigration frictions may present challenges, the ongoing supply chain relocation away from China could greatly benefit India. Moreover, India's substantial forex reserves, fiscal discipline, and a focus on reforms make it well-prepared to handle policy volatility. Strategic cooperation in defense, security, and economic domains is expected to remain robust regardless of the election outcome.

(With inputs from agencies.)