US President Donald Trump is scheduled to meet Prime Minister Narendra Modi on February 13. Many issues are expected to be discussed in this meeting. Therefore, investors are keeping a close eye on this meeting. On one hand, Trump will try to strengthen relations with India, while on the other hand, Modi may try to present India as a country where there are many investment opportunities for American investors. It is expected that both leaders will discuss trade, economic policy and strengthening bilateral relations.
These companies can benefit
Market analysts say that the talks between Trump ( Donald Trump ) and Modi ( Narendra Modi ) can benefit sectors like manufacturing, defense and IT services. But, the issue of tariff may remain at the top. Trump's focus is again on the 'America First' policy. He has talked about increasing tariffs on American imports. This will also affect India's exports. Especially the export of pharmaceuticals, textiles and IT services from India to America may be affected.
The issue of tariff will be important in the talks
Bhavik Thakkar, CEO of Abans Wealth and Investment Managers, said, "India has already reduced duty on many American products. Due to this, there is less chance of a confrontation between the two countries on the issue of tariff." But, investors would like to know what kind of concession Trump wants from India in terms of trade. He said that the situation has changed in terms of supply chain. Due to this, India has a chance to emerge as an alternative to China.
Trump's focus will be on arms imports
Trump will also emphasize on the issue of arms export. He wants to increase the export of American defense equipment. This can lead to an increase in American investment in India's defense sector. This will increase opportunities for Indian defense companies. Due to this, the shares of defense companies can rise. America is a big market for Indian IT and pharma companies. PM Modi would like that after Trump becomes president again, there should be no obstacle in the way of Indian IT and pharma companies in America.
Also read: Will Donald Trump announce tariffs even before meeting PM Narendra Modi?
Focus will be on the strength of rupee
The policy that Trump is insisting on can reduce the strength of the US dollar. The BRICS countries are talking about increasing the settlement of trade in local currency. Trump can try to ask Modi for a guarantee that India will not increase its focus on non-dollar trade. India's focus has increased on settling trade with Russia and China in rupees. Especially it wants to settle energy and defense products in rupees. If there is any discussion between the two leaders in terms of dollar and rupee, then it will affect both the currencies.
