India’s stock market has weathered many storms in the past, and recessions have often left deep scars on the Sensex, with historical crashes going as deep as 54%. Now, as global markets once again brace for turbulence, the looming threat comes from none other than former US President Donald Trump, whose policies are causing waves of uncertainty.
Trump’s Tariffs Spark Global Worries
Recently, Donald Trump made headlines with his bold decision to impose 10% blanket tariffs on almost all countries, shaking up global trade structures. While the exact levies may vary, the message is loud and clear—protectionism is back on the table, and it’s making investors nervous.
These sudden and sweeping changes have rattled stock markets worldwide, with top Wall Street leaders voicing their concerns about the implications for global trade and financial stability.
Fears of Another US Recession Are Growing
Adding fuel to the fire are the whispers among economists and financial experts: Could the US be heading toward another recession? With the economy already showing signs of strain, Trump’s aggressive trade stance might just push it over the edge.
Historically, when the US catches a cold, emerging markets like India often get the flu. This pattern has been witnessed before—during global downturns, the Indian stock market, especially the Sensex, has taken massive hits, plunging by over 50% in some cases.
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Is India Ready This Time?
This naturally raises the big question—is India ready for a Trump-led economic meltdown? With an increasingly connected global economy, India’s stock markets are not insulated from external shocks. The possibility of a sharp correction can’t be ruled out if recession fears in the US turn into reality.
However, the Indian economy has also shown resilience in the past, supported by strong domestic consumption, growing infrastructure investments, and a rapidly expanding middle class. But investors and policymakers need to stay alert, as the global economic environment becomes more volatile by the day.
