After the historic victory in the US Presidential elections, Donald Trump’s second innings in the White House will begin after the transfer of power on November 13.
Discussion has started on whether relations between America and India will improve or deteriorate in Trump’s new innings.
Moody’s report shows that India’s economy can benefit greatly from the change of power in the world’s most powerful country. The rating agency also believes that Trump’s arrival may further increase tension between America and China.
Rating agency Moody’s said that after Donald Trump becomes the President of America, trade and investment flows from China may go away but India and ASEAN countries can benefit from this change.
Moody’s Ratings said in a comment that America’s current policies are expected to change after Trump is elected as the next President.
The Trump administration is expected to run large fiscal deficits, take protectionist trade measures, stall on climate measures, take a tough stance on immigration, and ease regulations.
During his election campaign, Trump indicated his intention to pursue tax reform by making the Tax Cuts and Jobs Act of 2017 permanent, cutting corporate tax rates, and providing income tax relief.
According to Moody’s, Trump may pursue more aggressive immigration policies if he becomes president for the second time. However, this strictness may lead to shortage of workers in sectors like agriculture, retail, hospitality, construction and healthcare.
Loss to China, benefit to India
Regarding Trump’s foreign policy, Moody’s said trade and investment flows in the Asia-Pacific region could shift away from China as the US tightens investment in strategic sectors.
The rating agency said, “India and ASEAN countries may benefit from this change in US policy.” “Continued polarization between the US and China also risks increasing geopolitical divisions in the region, which could disrupt the global supply of semiconductors.”
What effect will there be on climate policy?
Regarding climate policy, this is expected to change, as Trump is advocating increased fossil fuel production under the banner of “American energy dominance.” “The Trump administration could potentially again withdraw from the Paris Agreement and reverse commitments to net zero greenhouse gas emissions by 2050,” it said.
A resounding victory over Kamala Harris
According to American news channels, Arizona’s victory in the presidential election has taken the number of electoral votes of newly elected President Donald Trump to 312, which is much more than the 270 required for the magic figure of majority.
At the same time, Democratic Vice President Kamala Harris was left far behind with 226 votes.
The post China will suffer loss due to Donald Trump’s return to America, what will be the impact on India?… appeared first on .