SBI report suggests potential shift in FDIs to US under Trump 2.0 but India remains resilient

A State Bank of India report indicates that foreign direct investment (FDI) trends in India may shift during Donald Trump's potential second term as U.S. President. The report cites regulatory changes from his first term that aimed to attract investments back to the U.S. Despite these potential shifts, the report notes that India has diversified its FDI sources, reducing reliance on traditional sectors. New sectors like renewable energy and medical devices are attracting investment, which could help offset any declines from conventional industries. The report also highlights that while Trump 2.0 may bring challenges, such as increased tariffs and stricter visa policies, it could encourage India to enhance its manufacturing and export capabilities. India has maintained a trade surplus with the U.S., indicating resilience in its exports.