Your search results

The potential impact of a Joe Biden’s presidency on the Indian economy

Posted by Balaji on January 21, 2021
0

Joe Biden has been elected the 46th president of the United States, while senator 

Kamala Harris who is of Indian and African-American origin, has become the first-ever

woman vice president-elect of the United States. Experts believe it would largely spell

good news for Indian companies and domestic financial markets.

Biden’s victory is most likely to be a favorable outcome for Indian markets as it will

increase confidence amongst investors by reducing policy uncertainty. The market

believes Biden is a more proactive and less-dominant person. There will be less

rhetoric that Trump has been famous for. Equities are at a sweet spot,” said Sanjiv

Bhasin, Director at IIFL Securities.

According to Global Markets Researcher Jim McCafferty, a Biden win will bring longer-

term certainty, not just for the US but for the rest of the world.

As Biden in office, investors have been keeping a close eye on the overall seats in the

House and Senate.

Brokerage firm Centrum Broking pointed out, it seems that there will be no majority in

Congress, i.e., looking at the ongoing trends a Democrats are likely to gain a majority

in the house while the Republicans are likely to gain control of the Senate.

“This clearly means that a lot will then come down to negotiations between the

Democrats & the Republicans on a possible fiscal relief bill, thereby keeping investor’s

breath on hold,” Centrum report said.

 

The change of power in the United States is likely to have profound implications

domestically, of course, but will also have a significant effect on the Indian economy.

US stocks rose steadily during and in the aftermath of the election, and there is reason

enough to suggest that Indian equities might copy the trend seen in Wall Street.

But beyond the stock markets, there is also likely to be a strategic shift in India-US

relations as they relate to trade. The United States is among the few countries that

India enjoys a trade surplus with i.e. India exports more to the United States than it

imports from it.

For all the unity on display between President Trump & Prime Minister Narendra Modi

and at events like the ‘Namaste Trump’ event in Chennai, or the ‘Howdy Modi’ rally in

Houston, their apparent friendship hasn’t yielded any material change in India’s trade

account with the US.

The transactional nature of Trump’s handling of bilateral trade ties may have had some

part to play in this, and some are of the view that Biden’s more pragmatic approach to

trade could be beneficial to India. Biden may also aim to normalize the US’s fractious

relationship with Iran, plagued by economic sanctions that have prevented India from

buying low-cost crude oil from the Middle East country.

Biden’s election manifesto also discusses increases in healthcare spending and the

expansion of the Affordable Care Act, both of which could have significant implications

to India’s pharmaceutical sector that exports large quantities of generic drugs to the

US annually. However, this will entirely depend on whether Biden is capable of pushing

through his policies in the US Senate where Democrats command only a razor-thin

majority.

The COVID-19 pandemic has also exposed the dangerous overreliance on China as it

relates to their supply chains. The strengthening of India’s bilateral relationship with

the US may go some way toward assisting India in marketing itself as a prime

alternative to China in this sector.

Finally, the ascendancy of Joe Biden to the US’ top seat could prove to be extremely

beneficial to India, opening up new avenues for funding and establishing new

manufacturing centers in India.

The list of expectations is very long however even if the above-mentioned demands or

expectations are met, the Indian Real Estate sector will gain a significant boost for

many years to come.

Leave a Reply

Your email address will not be published.

  • Experience World Class Service

  • Excellent
    Based on 170 reviews
    Ashwini Balakrishnan
    Ashwini Balakrishnan
    18. April, 2023.
    Mr. Balaji is our family acquaintance and is known to us for several years, he is also involved in philanthropic work, It is our good fortune that we entrusted the sale of our ancestral property to Mr. Balaji and his company. Mr. Balaji and his team of trusted lieutenants ensured the process right from selecting the buyer till completion of sale was completed without any hiccups and took care of all the paper work. Balaji and his team were willing to go the extra mile to ensure the sale was complete as per agreement. We would like to commend Balaji and team and hope we will have the opportunity to engage him again in the future. Wishing Balaji and team all success personally and professionally.
    Shubha Raghu
    Shubha Raghu
    18. April, 2023.
    We were introduced to Mr. Balaji by our sister sometime back for helping us sell our property. More than a broker he has been a good friend and guided us well through out the entire process. He has always been more than ready to help us. Our heartfelt thanks to him for a smooth journey in selling our property. I will definitely and strongly recommend his name to all my relatives and friends. Wishing him and his company success in all his future endeavours.
    LSPP LSPP
    LSPP LSPP
    7. March, 2023.
    BDA E-Auction great guidence from Narendra. Thank you for the service.
    Sandeep Yelburgi
    Sandeep Yelburgi
    3. March, 2023.
    In the world of real estate trust, credibility and professionalism doesn't exist. Mr Balaji and team are exception to this. They make buying/selling a property so easy. I could able to sell my property with ease. The process is so transparent from day 1 of meeting the buyer to the last day of selling my property. Thanks for service and keep the good work going in a honest way. Bangalore Real estate need more people like you.
    vikram solanki
    vikram solanki
    22. February, 2023.
    Govindraj Was Awesome To Deal With For a Smooth & Transparent Transaction.
    Chaya Rao
    Chaya Rao
    11. February, 2023.
    Excellent experience working with Mr. Balaji Badrinath who was amazing at his job. Made our real estate transaction smooth, convenient, excellent and top-notch. Balaji is an outstanding Realtor who is very professional, knowledgeable, experienced, efficient, direct, very responsive and has such a pleasing demeanor, is friendly, very prompt and never loses his composure. He helps trouble shoot timely with favorable solutions. He made my real estate transaction as a NRI easy and provided excellent guidance along the way. Bengaluru/India/this world needs more people like him to make it a better place! Thank you very much, Balaji, for all that you are and all that you do. You are truly an amazing human being and a professional! I am so glad that we found you online and you helped us close the deal on my parents’ house. Thank you! A special mention of Ms. Mala Malathi, Operations Manager, who I had the pleasure of meeting. She was very helpful in putting our paperwork together and helping me with some of the process. Thank you, Mala!
    Rekha Srinivasan
    Rekha Srinivasan
    11. February, 2023.
    I am very happy with the services provided by Mr. Balaji Badrinath, who helped me and my siblings on the the sale of our parents house. He was patient, polite, prompt and professional in all his responses! He was efficient in getting all the necessary paperwork and overall he helped make the sale a smooth transaction. I appreciate his professionalism!
    • Bangalore BDA Property Tax Construction industry Drones Home Loans Home Safety Tips Invest in Real Estate Metro in Bangalore New projects Online Rental agreement Own House Property Property Valuation Real Estate Registration Charge Rental agreement Rent House Residential Solar Panels Stamp Duty upcoming

    • Our Latest Listings

    Compare Listings

    Thank you for contacting us!

    Enter Your Information