The Trump administration's policy decisions will greatly impact global trade

The Finance Ministrys latest monthly economic review stated that the upcoming administration in US following Donald Trumps historic victory in the latest US elections is set to play a key role in trade dynamics worldwide ANI reportedAs per ANI the report mentioned that the global economic factors including shifts in interest rates earnings growth and geopolitical developments will significantly impact trade and capital flowsIt said Apart from the emerging indications of domestic growth and stability the dynamics of global interest rates earning growth and valuation geopolitical developments and policy decisions of the next administration in the United States will determine the course of trade and capital flowsIt added that the geopolitical tensions especially the ongoing war between Russia and Ukraine have added uncertainty to financial market There has been increasing demand for safehaven assets like US Treasuries and gold as investors seek stability ANI reportedThese sensitive conditions continue to weigh on global markets and could impact the trade environment in IndiaIt said Recent developments in the ongoing conflict between Russia and Ukraine have caused some concern in financial markets with safehaven assets such as US Treasuries and gold finding a bidThe report also notes that the export growth in India may face hurdles in the upcoming months due to weakening demand in developed markets ANI citedWhile the global slowdown raises issues for merchandise exports the ministry noted that the services trade continues to maintain its strong momentumIt said On the external front Indias export recovery may encounter challenges due to softening demand in developed markets However trade in the services sector is sustaining momentumDespite these external challenges the report highlighted that the domestic economic outlook in India still remains cautiously optimistic Notably Agriculture is set to benefit from favourable monsoon conditions higher minimum support prices and sufficient input supplies ANI citedStrong agricultural production prospects are expected to curb inflation despite existing price pressures in few food items Early November trends have already shown a moderation in specific food prices However geopolitical risks could still impact domestic inflation and supply chainsThe report highlighted that the highfrequency indicators of economic activity in India have shown signs of recovery following a temporary slowdown during the monsoon monthsMeasures of rural and urban demand the Purchasing Managers Index PMI and Eway bill generation all showed a good recovery in October With a growing manufacturing workforce and a notable inflow of young workers into organized sectors the formal employment sector is also experiencing expansionDespite Indias difficult the global environment these trends point to a growing domestic economyWith inputs from ANI