One certainty of 2025 – the terms of trade are set to change.
For India, this presents a major economic risk.
Trump has made trade a big focus of his second term as President of the USA – he is expected to upend the $24 trillion world goods trade and possibly the $7.5 trillion services trade.
This puts at risk India’s largest export market – the US.
The US has also been an important supplier of capital.
The US consumes as much as a fifth of India’s exports — led by two shiny new growth spots in phone manufacture and global capability centers — and is also among the biggest sources of fund flows, reports Bloomberg’s India Edition, written by Menaka Doshi.
Australia well knows that Trump’s trade strategies do not distinguish between friends and foes – as one of the USA’s closest defence allies, Australia was a major victim of Trump’s anti-China moves.
India could be hard hit this time around as he continues a “transactional and mercantilist” approach to trade.
India and Australia should be making the final negotiations on a trade deal a top priority.
Into India 