Jaishankar Sees Trump Victory as Opportunity for India in Supply Chains
External Affairs Minister S. Jaishankar, speaking to business leaders in Sydney, noted that Donald Trump’s re-election presents an opportunity for India to benefit from the accelerated reordering of global supply chains.
He emphasized that this shift could positively impact India’s manufacturing sector, allowing the country to capture investments seeking alternatives to China.
India’s Role in Reordered Supply Chains
Jaishankar explained that India views the ongoing realignment in supply chains as an opportunity rather than a disruption. He acknowledged that India “missed the manufacturing bus” in the 1990s and early 2000s, but now has a “second bite of the apple” with Trump’s anti-China stance potentially driving investment into India. This shift aligns with India’s current push to attract manufacturing operations away from China.
Focus on Immigration and Global Mobility
Jaishankar also highlighted that immigration and skilled mobility would be among India’s top priorities, expecting that “economically justified mobility” would still be managed carefully. He noted that while the US under Trump may tighten immigration, distinctions would likely be made for skilled, economically essential migration, a shift many countries are expected to adopt in response to an integrated global workplace.
Market Optimism for India
In the wake of Trump’s victory, markets are reportedly optimistic about capital inflows into India, especially as Trump has previously proposed tariffs of up to 60% on Chinese goods. Veteran investor Mark Mobius remarked that “India is the big beneficiary” of this shift, as it possesses a labor force capable of matching China’s scale and cost. The diversification of supply chains could further bolster India’s appeal as a manufacturing hub.
Following the election, Prime Minister Narendra Modi congratulated Trump on his win and discussed strengthening the India-US Comprehensive Global Strategic Partnership, which aims to bolster bilateral ties for mutual economic and global security benefits.
