Political differences between them will impact Indian economy differently – ThePrint – ANIFeed

New Delhi (India), November 1 (ANI): As the US presidential race between Democrat Kamala Harris and Republican Donald Trump intensifies, sectors of the Indian economy may feel the economic ripple effect of the election results due to political differences. between them, the analysis of JM Financial Institutional Securities emphasizes.

The analysis said a Harris victory would be accompanied by a more accommodative stance from the US Federal Reserve and would push the Reserve Bank of India (RBI) to cut domestic interest rates. This will benefit Indian non-banking finance companies (NBFCs) as falling interest rates could reduce funding costs and boost demand for loans.

In contrast, a Trump victory could keep interest rates elevated in the US, forcing the RBI to maintain higher rates, delay rate cuts and slightly favor public sector banks (PSBs) over NBFCs.

Kamala Harris’ victory will be beneficial for life insurers in India as the Democrat supports the move to cut rates.

“Republican results could be negative for insurance companies,” the report said.

India’s information technology (IT) sector, which has been a major beneficiary of US demand, is eyeing a Republican victory given former President Trump’s restrictive stance on the H-1B visa program, according to a report. If the Republicans win, Indian IT companies could face additional cost pressure but are unlikely to see disruption.

India’s pharmaceutical sector will remain largely unscathed despite the Biden administration’s policy of allowing Medicare to negotiate drug prices, set to begin in 2026. Republicans could potentially cancel or limit these negotiations, changing market dynamics but having minimal impact on India’s pharmaceutical exports.

If the Republicans win, they will increase tariffs on Chinese imports, strengthening the China+1 strategy and opening up new export opportunities for Indian auto component makers, the report said. This will increase India’s share of global supply chains, although higher tariffs may require Indian manufacturers to increase their presence in the US, the report predicted.

The Republican administration led by Trump will approve policies to support shale production in the United States, which may lead to a decrease in world oil prices. The move will impact India’s energy import bill. His pro-oil stance, coupled with efforts to ease geopolitical tensions, could lower the oil risk premium, which could be a net positive for India’s import-dependent energy sector.

The stability of interest rates under Trump may limit short-term demand in the Indian real estate market, especially for affordable housing. Additionally, Trump’s “America First” policy may limit IT recruitment, which will impact Indian office occupancy. Therefore, according to the report, flexible office operators and commercial real estate stakeholders will be closely monitoring any policy changes that may curb the growth of offshore business.

Trump’s US election victory could weigh on commodity prices given past tariff policies that have disrupted global trade flows. The report added that higher tariffs on Chinese metals could benefit Indian metals exporters, although price volatility could impact long-term profitability.

Interestingly, the report adds that Trump’s stance on China is expected to further open the US market to Indian chemical exports. This would potentially offset the tariffs India faces, which would benefit the country, the report said.

The textile and tile industries, especially Morbi’s ceramics industry, could see increased demand under the Trump administration as tariffs on Chinese goods push American buyers to look for alternatives. He further added that a Trump victory would potentially benefit the Indian wire and cable industry with a possible increase in demand from the US due to curbs on imports from China. (ANI)

This report is automatically generated by ANI News Service. ThePrint is not responsible for its content.