Donald Trump’s Presidency: Impact on India, Asia, and Global Policies
With Donald Trump set to become the next US president, India and other Asian countries might benefit from rising US-China tensions and potential investment restrictions in strategic sectors, according to Moody’s Ratings. The agency suggests that trade and investment flows in the Asia-Pacific region could shift away from China, benefiting India and ASEAN countries.
Under Trump’s administration, significant changes are expected in fiscal, trade, climate, and immigration policies, differing from the current US President Joe Biden’s approach. Trump plans to make the 2017 Tax Cuts and Jobs Act permanent, lower corporate tax rates, and provide income tax relief, which could increase federal deficits. His protectionist trade policy might disrupt global supply chains, affecting sectors like manufacturing, technology, and retail.
Trump’s climate policies are likely to reverse previous initiatives, focusing on fossil fuel production and possibly withdrawing from the Paris Agreement. This could reduce funding for clean energy projects, although private-sector initiatives and state-level mandates might partially offset this shift. Market-driven growth in wind and solar energy could continue due to their cost-competitiveness.
On the regulatory front, Trump is expected to adopt a lighter approach, relaxing rules for small and midsized banks, which might reduce their capital requirements but increase risks for creditors.
Doubts Revealed
Donald Trump -: Donald Trump is a businessman and was the 45th President of the United States. He is known for his unique style of leadership and making bold decisions.
US-China tensions -: US-China tensions refer to the disagreements and competition between the United States and China, which can affect trade and international relations.
Moody’s Ratings -: Moody’s Ratings is a company that evaluates the financial health of countries and companies, helping investors understand risks.
Protectionist trade measures -: Protectionist trade measures are policies that a country uses to protect its own businesses by making it harder for foreign companies to sell their products there.
Global supply chains -: Global supply chains are networks that involve the production and distribution of goods across different countries.
Paris Agreement -: The Paris Agreement is an international deal to combat climate change by reducing greenhouse gas emissions.
Regulatory changes -: Regulatory changes refer to modifications in the rules and laws that govern how businesses operate, which can affect their activities and risks.
Creditors -: Creditors are people or institutions that lend money to others, expecting to be paid back with interest.