may face a logjam in the Senate and the House. The new administration is likely to encounter hurdles in pushing some of its policies. Biden may have to persist with a few of outgoing President Donald Trump’s policies. However, some positive impact is likely to be seen across
Here’s how it may effect certain sectors
Stocks to surge:
Indian markets may follow the trend on Wall Street and are likely to be positively impacted. End of uncertainty will also improve sentiment.
The new administration will continue US policy of strengthening strategic, economic and trade ties with India, which could get accelerated given the trade war with China. Pharma sector may gain with increased government spending on healthcare. The visa regime will may not see big changes, but IT companies can breathe easy given Biden’s proposed H-1B visa reforms.
Low impact on trade:
A change of guard at the White House may not significantly alter America’s trade policies. India may actually come under pressure to join the Trans-Pacific Partnership Agreement, which the Trump administration had opted out of.
Supply chains may shift:
The efforts to relocate supply chains from China will gather momentum and India would stand to benefit from such a move by the US. The new administration is likely to push this agenda as it seeks to de-risk the world by reducing dependence on China.
Climate change action:
The Biden administration is likely to have a very different approach to climate change and this could benefit India in terms of funding and other ties linked to renewable energy.
Biden’s proposed business plan:
Taxes: Raise corporate tax rate to 28% and top individual income tax to 39.6%; 10% offshoring tax proposed
Reform the visa regime for highly skilled workers; Exempt from any cap recent graduates of PhD programmes in STEM (science, technology, engineering, and mathematics) fields
Infra and housing:
Invest in second railroad revolution, modernising airports, building smart cities and constructing and repairing roads and highways; Tax credits of $15,000 for first-time homebuyers
Speed up transition to electric vehicles; Create 1 million new jobs in auto industry, supply chains and infra
Make it easier for people crushed by debt to obtain relief
Source From : Times Of India