Pharma, IT sectors may face heat if import curbs imposed

Donald Trump’s Presidency of the United States will open new opportunities for India, though certain sectors, especially pharma and IT, may face the heat if the incoming president decides to impose restrictions on imports and H1B visa regulations, experts said on Wednesday.

PM Narendra Modi’s friendly relationship with Trump will have a positive bearing on Indo-US relations but India may have to adapt its strategies to maintain cooperation in areas of mutual interest.

Former Niti Aayog Vice-Chairman Rajiv Kumar said: “Trump’s presidency can be a new opportunity for India. Trump will impose tariffs and import restrictions on countries that he thinks are not friendly to the US, like China and even some European countries, and this can open markets for Indian exports.”

Barclays, in a research report on Wednesday, said trade policy is where Trump is likely to be “most consequential” for emerging Asia, which includes India and China.

“We estimate Trump’s tariff proposals would subtract 2 per cent from China’s GDP — and greater pain on the more open economies in the rest of the region,” Barclays said. The more domestically oriented economies, including India, Indonesia and the Philippines, would be less vulnerable to higher tariffs, it added. Kumar said Trump will see India as a friendly country, and it can expect larger investments by US firms into India. “Overall, Trump’s victory is a positive development for India,” he said.

However, some feel that his trade protectionist views could have some negative impact on India’s exports.