India sees window of opportunity amidst tests

...India sees window of opportunity amidst tests

- Dipak Mondal @New Delhi

HOURS after taking charge as US president, Donald Trump took a slew of major executive actions to effect major policy shifts, many of them with global ramifications whose ripple effects would be felt across the world including India.

The Indian equity markets felt the tremors on Tuesday with benchmark indices falling by 1.6%, while the rupee tanked 14 paise to close at 86.59 against the dollar. However, most analysts and commentators expect limited economic impact on India as most decisions won't impact India directly, though the uncertainties could shake a few indicators in the short term.

In his America First Trade Policy, Trump announced withdrawal from global tax deals as well as the Paris Climate Accord. He declared a national energy emergency, reinstating the country's oil and gas industry at the centre stage. He also ended the federal mandate for electric vehicles, which has set a target of electrifying all new light-duty vehicles by 2027.

While he did not sign any orders announcing import tariff hikes, he proposed a 25% duty on goods coming from Canada and Mexico. Earlier, Trump had proposed a 60% tax on Chinese imports.