India REBOUNDS

Deepak Dwivedi

IN a resounding display of resilience, the Indian stock market became the first in the world to completely erase the losses triggered by US President Donald Trump’s reciprocal tariff announcement.

The equity market in the country experienced a surge as trading recommenced following an extended weekend. By the end of the trading session on April 15, the Nifty 50 saw a significant increase of up to 2.4 per cent, buoyed by investor confidence and supportive macroeconomic cues. The surge restored the NSE index to its position on April 2, the day when President Trump implemented the executive order on tariffs.

A Bloomberg report suggested that global investors are considering Indian markets as a “relatively safe” option in the face of worldwide instability due to Trump’s action towards both adversaries and allies. The report indicated that, due to its vast population of over 1.4 billion individuals and substantial domestic investors, India’s markets possess a significantly higher ability to resist a potential worldwide recession.

Gary Dugan, CEO of The Global CIO Office, was quoted as saying in the report, “We remain overweight India in our portfolios.” Explaining the reason, he told Bloomberg, “Supported by good domestic growth and aided by a likely diversification of supply chains away from China, Indian equities are seen as a safer bet over the medium term.” The escalating trade war between America and China has thrust Indian markets and the country’s investment potential into the international limelight.

Flexible, cooperative

Importantly, India remains far less exposed to US tariffs than its competitors. The country accounts for just 2.7 per cent of total US imports, compared to China’s 14 per cent and Mexico’s 15 per cent, a significant buffer that offers additional resilience in the face of rising protectionism.

While China has retaliated against the US with counter-tariffs, India has maintained a more flexible and cooperative approach. A ‘win-win’ trade agreement between New Delhi and Washington is said to be in its final stages – a move that has boosted international confidence in India’s diplomatic and economic adaptability. Despite a challenging global economic environment, India’s ability to weather external shocks and attract global capital is being increasingly recognised.

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