Trump Tariffs Give India Competitive Edge in Select Sectors

Uncertainty was expected in equity markets following the US election, but the rapid pace of policy changes has exacerbated volatility, says Taher Badshah, chief investment officer at Invesco Mutual Fund. In a telephonic interview with Abhishek Kumar, Badshah said that the fund house has moderated earnings growth and returns expectations for the near term. Edited excerpts:

- Taher Badshah

What are the implications of Trump tariffs on India and global markets?

The 26 per cent tariff, while higher than expected, is considerably lower than those applied on other Asian countries such as China, Vietnam, Indonesia, and even Bangladesh. This can provide India a relative advantage in certain product categories such as textiles, chemicals, and footwear, where reshoring is flexible and may be a blessing in disguise for us over the medium-term.