you may face a bottleneck in the Senate and House. The new administration is likely to encounter obstacles in pushing forward some of its policies. Biden may have to persist with some of outgoing President Donald Trump’s policies. However, some positive impact on
In India.
This is how it can affect certain sectors
Actions to increase:
Indian markets may follow the Wall Street trend and are likely to be positively affected. The end of uncertainty will also improve confidence.
Investment mantra:
The new administration will continue the US policy of strengthening strategic, economic and trade ties with India, which could be accelerated given the trade war with China. The pharmaceutical sector can gain from increased public spending on health care. The visa regime may not see much of a change, but IT firms can breathe easy given Biden’s proposed H-1B visa reforms.
Low impact on trade:
A changing of the guard at the White House may not significantly alter America’s trade policies. In reality, India may come under pressure to join the Trans-Pacific Partnership Agreement, which the Trump administration had chosen not to participate in.
Supply chains can change:
Efforts to relocate supply chains from China will gather momentum and India would benefit from such a move by the US The new administration is likely to push this agenda forward as it seeks to remove risks from the world by reducing dependence on China.
Action against climate change:
The Biden administration is likely to have a very different approach to climate change and this could benefit India in terms of financing and other linkages linked to renewables.
Biden’s proposed business plan:
Taxes: increase the corporate tax rate to 28% and the maximum individual income tax to 39.6%; Proposed 10% relocation tax
Visa:
Reform the visa regime for highly skilled workers; Exempt from any limits for recent graduates of doctoral programs in STEM fields (science, technology, engineering and mathematics)
Infra and housing:
Invest in the second rail revolution, modernize airports, build smart cities and build and repair roads and highways; $ 15,000 Tax Credits for First Time Home Buyers
Car:
Accelerate the transition to electric vehicles; Create 1 million new jobs in the automotive industry, supply chains and infrastructure.
Bankruptcy:
Making it easier for people burdened with debt to get relief
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