Amid uncertainty over Trump's policies, US companies hold India investments
Trump's election has put US companies and those who have American companies as top clients in a 'wait and watch' mode, as they have put a pause on making further investments in India.
This is causing worry among several state governments, with officials telling ET that companies are holding off on finalising large investments as they await clarity on Trump's policies after his inauguration as President on January 20. Several of them also expect the Trump administration's policies to favour India over China and see it as a positive for Indian businesses.
«There is too much uncertainty right now,» one person from a large electronics manufacturing services firm said. «Any further investment into India is on hold until we get clarity on what Trump's policies will be,» the person said. «We are also heavily reliant on our clients and their strategy to base our next moves and at the moment our clients are not wanting to commit to anything further as they may have to set up more factories in the US. We will ultimately go where the client wants.»
On the other hand, there are companies that are scurrying to diversify away from their large operations in China and are looking to increase their investment in India, but foresee several hurdles.
«Trump coming in means that there will be a tacit understanding that American companies should diversify away from China,» said an executive at an American insole firm based at Ambur near Chennai. «This is great news for India, but it is not going to be easy. We are keen to double down
