Biden Presidency impact on Indian Economy.
                     Biden Presidency impact 
on Indian Economy
INTRODUCTION
• In choosing Biden over Trump, the 
American voters have most likely 
changed the course of the global 
economy. 
• This is why everyone has been so 
keenly following the twists and turns 
of the presidential elections in the 
US.
Source: 
indianexpress.com
TRADE SURPLUS 
• A recent analysis by Madan Sabnavis 
of CARE Ratings shows that over the 
past 20 years, India has always had a 
trade surplus with the US. 
• The trade surplus has widened from 
$5.2 billion in 2001-02 to $17.3 
billion in 2019-20.
Source: 
indianexpress.com
IMPORT & EXPORT
• In 2019-20, India exported goods 
worth $53 billion to the US, that’s 
roughly 17 per cent of all Indian 
exports that year.
•  India imported goods worth $35.7 
billion in return that’s roughly 7.5 per 
cent of all Indian imports.
Source: 
indianexpress.com
TRADE
• In the Trump worldview, trade was a 
zero-sum game. In other words, a 
country had to lose for another to 
gain. 
• Under a Biden administration, India’s 
trade with the US could recover from 
the dip since 2017-18.
Source: 
indianexpress.com
GROWTH IMPULSE
• Combined with the control of COVID-
19 infections and the economic 
recovery, the US could yet again 
provide a growth impulse to the 
global economy that countries such 
as India need to boost their exports 
and grow.
Source: timesofindia.com
H1-B visa
• Biden’s perspective towards H1-B 
visa issue, affects the prospects of 
Indian youth far more than the youth 
of any other country.
• This will massively affect the Indian 
economy.
Source: 
indianexpress.com
Corporate Tax Hike May Lower IT Spends
• Biden is obviously better from the 
immigration perspective and 
continuous rejection of visa will come 
down, lowering on-site costs.
• If there is an increase in the H-1B 
quota and removal of country caps, it 
will help Indian IT companies to plan 
their resources in a better way.
Source: www.bloombergquint.com
• BidBiednen ’si sS timualursg Pinlaanl Tlyo  Aipd oInsditiaivn eIT  Ffiromrs IT 
companies as he is perceived to be 
less aggressive than Trump on 
outsourcing and visa restrictions.
• Over the longer run, the new 
presidency will push for large 
stimulus as was promised by Biden, 
and that should boost the economy.
Source: www.bloombergquint.com
• Under StOhUeR CTINruG mOFp C HaEdAmP iCnRiUsDtrEa OtiIoL n, the 
US sanctions on Iran severely limited 
India’s sourcing of cheap crude oil. 
• For an economy such as India, which 
needs a regular supply of cheap oil to 
grow fast, a normalisation of US-Iran 
relationship would be more than 
useful.
Source: www.bloombergquint.com
• Biden haPsa risp Crloimaties eAdgr eetmo enrtejoin the 
Paris Climate Accord, and this may 
help countries such as India in 
dealing with the massive challenges 
both technical and financial on this 
front.
Source: www.bloombergquint.com