India’s Prime Minister Narendra Modi and US President Donald Trump are going to meet today on 13 February. Global trade, economic policy and bilateral relations are expected to be discussed in this meeting. The stock market is also closely monitored on this meeting. Sectors such as manufacturing, defense, IT and pharma may be directly affected by this conversation. Let us know which major issues can be discussed in the Modi-Trump meeting.
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Tariff War and ‘China Plus One’ strategy
Analysts believe that the issue of tariffs will be prominent in the meeting. Trump is imposing tariffs on imported goods from various countries under its ‘US First’ policy, which may lead Indian exporters to face challenges. IT, pharma and textile sectors can be particularly affected by it.
In addition, new opportunities for India may emerge due to the trade war between the US and China. Investors will keep an eye on how India can strengthen its position under the ‘China Plus One’ strategy. If India gets the support of America under this strategy, then electronics and automotive sectors may see a boom.
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Negotiations on defense cooperation
There may be discussion on increasing cooperation between India and the US in the defense sector. Trump also wanted India to buy more defense equipment from America. This time too they can insist on this. If there is a major defense deal between the two countries, then the shares of companies like Hindustan Aeronautics Limited (HAL), Bharat Dynamics, Bharat Electronics and L&T can be seen in shares.
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The issue of dumping cheap goods from China
The issue of dumping cheap goods from China may also arise in the meeting. The excess of Chinese products in India is causing damage to domestic companies. If this meeting agrees to stop dumping of cheap products from China, then Indian manufacturing companies will benefit. According to experts, if concrete policies are made, Indian construction sector companies will get strengthened.
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IT and Pharma Sector
America is a major market for Indian IT and pharma companies. However, the Trump administration’s H-1B visa policy and new regulatory changes are a cause of concern for these industries. Prime Minister Modi would like to make it easy for Indian companies to trade in America during Trump’s possible second term. If the US adopts favorable policies for the Indian IT and Pharma sector, then the trust of investors will increase.
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Dollar vs local currency settlement
Trump may emphasize the strengthening of the US dollar in this meeting. Recently, BRICS countries proposed to trade in their local currency instead of US dollars. Trump has already expressed concern over the issue and may expect a clear stand from India. India’s stance focuses on promoting trade in rupee with Russia and China. If there is talks on this subject, then its effect can also be seen on the currency market.
