Global financial powerhouse Nomura believes that Donald Trump’s recent US election win could prove beneficial for India, given the deep economic and strategic ties between the two nations. In a recent report, Nomura outlined that India is positioned to benefit from a Trump presidency due to its domestic demand-driven growth model and favorable shifts in global supply chains.
Nomura’s analysis highlights that India, as a large domestic economy, may remain relatively insulated from the negative effects of weaker US economic growth. The report anticipates potential gains from supply chain diversification away from China, which could bolster India’s manufacturing sector under Trump’s policy focus on de-risking from China.
Furthermore, the US accounts for approximately 18% of India’s merchandise exports, with key sectors such as IT, pharmaceuticals, and professional services standing to benefit from Trump’s pro-business stance. While minor trade frictions could arise, Nomura suggests they would be outweighed by strategic advantages as India becomes a critical ally for the US, counterbalancing China’s influence in Asia.
India’s resilience, backed by strong FX reserves and fiscal discipline, positions it well to handle potential market volatility stemming from Trump’s policies, according to the report. Nomura underscores India’s readiness to capitalize on the global supply chain shift, driven largely by investments from the US, Europe, and developed Asian economies, rather than China.
