Bigger rout looming? As recession talk grows, how Indian stock market investors can prepare for the worst

recession talk in the United States is growing louder with each passing day and this will be completely driven by President Trump's upending of tariff structures. A recent Reuters poll found that 95% of economists across Canada, the US and Mexico thought the risk of a recession in their respective countries had increased following Trump's tariff rollout.

Going by his talk, the President is not going to relent anytime soon. In fact he is doubling down on his rhetoric to impose reciprocal and sectoral tariffs on various countries come April 2. India, this time, will be on the receiving end.

As a result of heightened investor fears, Wall Street stocks declined in the last few days, the ripple effects of which have been felt in India and other emerging markets. So, how should you as an individual investor prepare for the worst possible outcomes? Here's a breakdown.

How will a US recession impact India and its equities?

Even though a potential US recession is a hot topic, experts suggest its impact on India and its equities may not be as severe as feared.

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Kush Gupta, Director at SKG Investment & Advisory, points out that while concerns are growing due to a global slowdown and weaker US growth forecasts, the current situation doesn’t meet the classic recession definition of rising unemployment and a major drop in economic activity. «I think it’s premature to conclude this downtrend as a recession,» he says.

Gupta also emphasizes that while India isn’t completely insulated from global shocks, domestic