Negative impact :-

  • Donald Trump is proposing to tighten H-1B visa regulations. If that is implemented, many Indians who are working in US will return to India. That will effect Indian economy negatively. Providing employment opportunities to all of them immediately in India is a difficult task.
  • 60% of India’s IT exports are to US markets. With the ‘Buy American, Hire American’ policy of Donald Trump, India’s IT sector will suffer. Donald Trump’s decisions are causing a drop of stock prices for some companies.
  • Donald Trump’s continuous decisions against immigrants made many Indian doctors in US uncertain about their future there.
  • US is applying restrictions on India to stop importing oil from Iran and to not buy S-400 missile defence system from Russia.
  • US-China trade war impacts international trade and hence affects India and other countries negatively.

Positive impact :-

  • If IT & Medical professionals return to India, Modi’s dream of brain gain will become true. India’s development will be faster.
  • ‘Buy American, Hire American’ policy is very costly for many IT industries in US. Indian-based IT industries in US may shift their base to India, which is very beneficial to Indian economy.
  • Defence ties between India & US are expected to remain the same under Donald Trump’s administration.
  • With the increase of talent pool in India, our country can attract more foreign investments.
  • To counter China, Trump may support India in many issues including in India’s NSG bid.
Also Read :  Cap on wedding expenditure - Is it fair?

Conclusion :-

There are some temporary negative consequences for India, if all of Donald Trump’s proposals come into implementation. But in the long run, Indian economy will benefit by the increase in skilled workers and investments.

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  • Sandeep, Dec 23, 2017 @ 12:13 pm Reply

    It was purely an Election gimmick. Donald trump knows it well that Indian IT professionals are much more competent and productive.

  • ankita, Jun 16, 2017 @ 12:43 pm Reply

    Less Foreign reserves: If Indians will not be able to get the job in US, then it will affect the foreign reserves in the country which is not good for the country.
    Less FDI from America: As Trump has announced Buy American Hire Americans India will get less FDIs from the United States.

  • Naveen Kumar, Feb 21, 2017 @ 11:01 am Reply


  • Gayatri, Feb 13, 2017 @ 10:16 am Reply

    Obama is the best. He didn’t go for any extreme decisions.

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