The global economic environment has undergone significant transformations during 2022–2025 due to geopolitical tensions, inflationary pressures, monetary tightening, trade protectionism, and supply-chain restructuring. As the world’s largest economy, the United States has implemented several economic and trade policy measures that have substantially influenced emerging economies, including India. This study examines the impact of changing U.S. economic and trade policies on India’s trade performance, foreign direct investment (FDI), exchange-rate stability, capital flows, manufacturing sector, and information technology industry. The study is based on secondary data obtained from the International Monetary Fund (IMF), World Bank, Reserve Bank of India (RBI), Department for Promotion of Industry and Internal Trade (DPIIT), U.S. Bureau of Economic Analysis (BEA), and the Office of the United States Trade Representative (USTR). The findings reveal that while U.S. monetary tightening and protectionist trade measures created challenges for capital flows and export competitiveness, opportunities emerged through the China+1 strategy, supply-chain diversification, and increased strategic cooperation between India and the United States. The study concludes that India’s economic resilience, policy reforms, and expanding manufacturing capabilities have enabled the country to adapt effectively to evolving global economic conditions.
Dr. Narendra Singh (Wed,) studied this question.