Joe Biden, 77, has been declared the winner of the US election 2020, and analysts firmly believe, his presidency could be a gain for the Indian market. People will be interested in investing as there might be less uncertainty in policies.
In choosing Biden over Trump, the American voters surely have most likely changed the dynamics of the global economy. With the new presidency in action, everybody is keenly waiting for new changes, turns & twists!
Unlike Trump, Biden’s main concern would be the need to control the Covid pandemic even before any effective economic recovery measures could take place.
There are numerous ways in which the USA government & its policies could affect India, but Biden even before joining as the vice president under the Obama administration expressed that he wanted to maintain a stronger relationship with India. Hence, chances are that now India & USA might hold transparency!
According to an article by the Indian Express,
A recent analysis by Madan Sabnavis of CARE Ratings shows that over the past 20 years, India has always had a trade surplus with the US. The trade surplus has widened from $5.2 billion in 2001-02 to $17.3 billion in 2019-20. “Trade surplus had peaked at $21.2 billion in FY18 (2017-18) and has moderated to some extent,” points out the report.
In 2019-20, India exported goods worth $53 billion to the US — that’s roughly 17 percent of all Indian exports that year — and imported goods worth $35.7 billion in return — that’s roughly 7.5 percent of all Indian imports.
With the Biden administration, Indian trade is observed to be less conspicuous than in the trump reign.
Another major positive reform is the elimination of restrictions on employment-based green cards and the H-1B visa system, if everything goes as planned, he might turn Trumps’ policies upside down that obstructed Indian Immigration to the US for a long while.
Though the China trade war is set to continue, due to the corporate business uncertainty, he is unlikely to rebuild alliances anywhere else which could prove for a positive growth rate in the long term. A stronger stand of USA against China could be more positive for India in both military & diplomatic issues.
Biden is set to work on the climatic conditions, commit to the Paris Agreement on the climate change, global challenges, and is expected to approach the Indian-Americans to address the issues.India gets its energy from Iran and Trump made sure that the supply from Iran has been stopped. Few sanctions policies at Washington affected India’s trade by increasing import rates and decreasing export values. An alteration in this policy towards Iran could help India on a larger scale.
The Paris Agreement on the climate change could increase hopes for India with the investment from The Green Climate Fund in Indian renewable energy initiatives.
India is emerging as a global power in its own right and trump has been ignorant in considering it. Thus the change in policies and a better administration could help India in its process of becoming a world power.