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US elections and it’s possible effect on India

This election has seen all the drama to make a superhit political thriller: A spellbound world of politics, various claims that may drag on indefinitely, untimely cases of triumphs and a stalemate that could run for quite a long time – all in all, an exemplary nail biter.

Even though the US represent 5% of the total population, it represents 20% of the worldwide income, and which marks it monetary significance in the presidential election. What's more, when the after effects of the decisions are out, we can see a new infusion of cash in the Asian economies. India being one the greatest parts of the Asian market, we can see large inflows of foreign capital in the Indian market.

The US relationship is the most significant of India's bilateral ties, much of which is on account of China's hostility. The relationship with the United States of America matters to India more than some other bilateral commitments monetarily, strategically and socially. American Presidents have a large effect on the relationship between the two nations. Policies regarding immigration, trade and bigger key issues are impacted. Especially when in 2020, the vengeance against China has helped New Delhi build its relationship with Washington, it is important to maintain this relationship.

India isn't in a situation to tackle China all alone. For the Indian government, the Trump administration's harsh perspective on China has been more than welcome. We will have to wait and watch Biden’s approach towards this issue but its most likely that he will focus more towards mending relations with allies including China.

Last US elections witnessed quite surprising outcomes. While people were still absorbing this event, the market saw gigantic instability before and after the political race results were announced. To give it some context, upon the announcement of the results in 2016, Nifty 50 was close to 8,000. Upon the arrival of the official political race result, the market was still in shock. Donald Trump winning against the favourite candidate, Hillary Clinton. This led to sideways development in the Global value market as well. Post that, we saw significant increase in market indices by over 20% in a year's time. This indeed tells us how US Elections May Impact Indian Equity Market.

Biden, who served as the Vice President in Barack Obama's administration, had advocated for more grounded relationship with India. During his campaign as well, he said that his administration will change the H-1B visa framework by wiping out the limitations on work based green cards for Indians, which is good news for Indian immigrants. US may take a U-turn on Iran under Biden, which will give India access to less expensive oil. After Trump hauled out of Paris agreement, Biden has promised to return, which could also benefit India.


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