Biden, 77, will become the 46th president of the United States, while Senator Kamala Harris, 56, of Indian and African-American descent, has become the first female vice president-elect of the United States.
“I think there won’t be as much protectionism if Biden wins, and therefore it would be good for India,” investment guru Jim Rogers told ETMarkets.com on Friday night.
Some had high hopes of strengthening ties between the United States and India.
“As China is no longer at the sweet spot on the global relations roadmap, things are likely to turn in India’s favor. Joe Biden will have few options to accept, ”said Deven Choksey, group CEO, KR Choksey Investment Managers.
“India is in a very favorable position. Biden also got the most votes from the non-white community. I believe it will make India a preferred partner on the world front, ”added Choksey.
Biden, even before being elected vice president in the Barack Obama administration, had argued that he wanted a stronger relationship with India.
“I think he believes in a multilateral approach, and that would make him collaborate with all key trading partners, including India. There could be significant progress on stalled trade talks. He is in favor of liberal immigration policies. So IT sector concerns about restrictive visa policies could be a thing of the past, ”said Ajay Bodke, PMS CEO at Prabhudas Lilladher.
That said, there were some looming risks.
He believes in ensuring that key pharmaceuticals are made in the US So you need to see how that plays out, Bodke noted.
“You have to see Biden’s victory in light of the fact that they don’t have a large majority in the Senate. This may allay some concerns of the great fear that the market has pressured Biden to raise taxes or implement the socialist agenda. This may not be very successful, ”said Gaurav Dua, Senior Vice President and Head of Capital Market Strategy and Investments at Sharekhan by BNP Paribas.
“Given the continued dovish stance of the US Federal Reserve, the additional quantitative easing announced in the UK, liquidity will continue to be plentiful and is good news for global markets as well as emerging markets,” he added.
Dua was of the view that in the event of a measured increase in tax rates in the US, which would affect the profits of US companies, there could be more incremental flows to emerging markets.
While Biden has emerged as the clear winner in the presidential race, much depends on Georgia, where two runoff elections are scheduled for early January. The outcome is likely to determine which party is in control of the Senate. “With the two Senate seats in Georgia heading for a runoff in January, the Senate’s control is in balance,” Bodke said.
“The possibility that the dreaded Blue Wave with unlimited powers with the Democrats will lead to policies that would dramatically increase corporate taxes, taxes on the wealthy, strict environmental regulations, and broader regulatory oversight in industries as varied as banks, the energy, mining, healthcare and technology, “he warned.
Meanwhile, many believe the Biden team is divided in its approach to China. Some of his advisers have taken a tough, Trump-style view on China, while others say there may be a decoupling in the areas of national security and critical technology, but no more.
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