(Source – The Hindu, International Edition – Page No. – 8)
Topic: GS2- International Relations
Context
The Trump administration’s executive actions on immigration, trade, and AI will impact India’s workforce, economy, and diplomatic ties, necessitating strategic adjustments in India’s policies.

Trump’s Executive Actions and Initial Signals
- Donald Trump signed multiple executive orders (EOs) immediately after taking office, including revocation orders of Biden-era policies and exit orders from multilateral agreements.
- The White House described these actions as “100s of Executive actions in the first 100 hours to kick off America’s Golden Age.”
- India initially received positive signals, with External Affairs Minister S. Jaishankar attending Trump’s inauguration and holding meetings with U.S. officials.
- However, economic and trade policies under the Trump administration could pose significant challenges for India.
Immigration Crackdown and Its Impact on India
- Trump’s policies focus on border security, stopping illegal migration, and strict visa screening.
- The Immigration and Customs Enforcement (ICE) agency has increased raids and arrests, affecting undocumented Indian migrants.
- Over 7.25 lakh Indians are undocumented in the U.S., and 18,000 Indians are in detention for deportation.
- The economic impact of deportations includes:
- Loss of remittances: If deportations increase, India will face economic losses and rising unemployment.
- Trade pressure: Trump may use tariffs to force India to accept deported migrants, as seen with Colombia.
- Tighter visa rules: Restrictions on H-1B visa holders and work permits for spouses will reduce opportunities for Indian professionals.
Trade Policy and Tariff Weaponization
- Trump’s “America First Trade Policy” will likely bring more tariff-based pressures on trade partners, including India.
- In his first term, Trump withdrew India’s Generalized System of Preferences (GSP) status and stopped oil imports from Iran and Venezuela.
- India may face tougher trade negotiations as Trump prioritizes U.S. economic interests.
- The evolving U.S.-China relationship under Trump adds uncertainty, as Trump’s tariff threats to China are softer than expected.
U.S. Withdrawals from Global Agreements and Their Effect on India
- Trump exited organizations such as the World Health Organization (WHO) and OECD Global Tax Deal and rolled back commitments on climate change and green energy.
- These actions could reduce U.S. funding and support for India’s energy transition and development projects.
Artificial Intelligence (AI) and Its Economic Consequences for India
- Trump’s administration prioritizes AI investments, with a $500 billion Stargate AI Infrastructure project launched.
- AI advancements aim to keep the U.S. ahead in technology and reduce reliance on foreign tech workers.
- AI job replacement risks:
- Tech leaders like Google’s Sundar Pichai say over 25% of new code is AI-generated.
- Meta’s Mark Zuckerberg predicts AI will replace mid-level engineers.
- These changes may reduce demand for Indian tech professionals seeking U.S. jobs.
India’s Response and Future Strategy
- India must rethink its education and skilling policies to absorb impacted STEM graduates.
- New Delhi must factor in Trump’s trade, tech, and immigration policies while engaging diplomatically with the U.S.
- India’s reliance on the IT-BPM sector, which contributes 55% of GDP and 40% of exports, means it must adapt to global shifts in AI and digital industries.
Conclusion
- The Trump administration’s policies on immigration, trade, and AI will significantly impact India’s economy and workforce.
- India must proactively adjust its diplomatic and economic strategies to navigate these changes effectively.