New Delhi. What Donald Trump’s second term in the White House will mean for India and other Asian countries after his historic victory in the US presidential elections is a matter of discussion. According to Moody’s, a rating agency in terms of economy, India can benefit from this change of power.
China’s problems will increase
The Global Rating Agency says that this change could be due to the increasing tension between America and China and possible investment restrictions in important sectors. Moody’s said trade and investment flows in the Asia-Pacific region could shift further away from China as the US tightens investment in strategic sectors. This will have a negative impact on China’s economy and will result in a decline in regional growth. However, India and ASEAN countries may benefit from this change in American policy.
Possibility of change in American policy
According to Moody’s, there is a possibility of significant changes in American policy under the Trump administration. There may be important changes especially regarding fiscal, trade, climate and immigration issues. This will be different from the approach of the Biden administration.
Indications for carrying forward tax reform
During his campaign, Trump signaled 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. These initiatives are accompanied by comprehensive tariffs, including a hefty levy on Chinese imports. This is likely to increase the federal deficit.
Possibility of relaxation in rules
Moody’s also predicts the possibility of protectionist trade policies under the Trump administration, which could disrupt global supply chains and negatively impact sectors dependent on imported materials and goods, such as manufacturing, technology and retail.
Tags: Donald Trump
FIRST PUBLISHED: November 10, 2024, 18:14 IST
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