Posted On : 2021-05-12
Author : CA P R Sankaranarayanan
Joseph Robinette Biden Jr. (78), popularly known as Joe Biden, is a seasoned politician of the US belonging to Democratic Party, who has been sworn in as the 46th President of USA on the 20th January, 2021. He was the 47th Vice-President during 2009-17 when Barrack Obama was the President. Kamala Devi Harris (57), an Indian-African American lineage, is the 49th Vice-President under Joe Biden and is the first female Vice-President of the US.
During Obama’s presidentship Indian premier Narendra Modi had excellent comradery with both President Obama and Vice-President Joe Biden. Modi has been continuing good diplomatic relationships with both Republicans and Democrats.
Before dwelling on the impact of Biden’s new regime in the US on Indian economy, let’s briefly look into the US economy and related aspects. Biden took over as President at the peak of COVID-19 pandemic. Naturally therefore, he has to focus on development with the pandemic. As a result, he sooner signed legislation for major pandemic relief. This costs heavily on the treasury. Of course the President has full control over the efforts for COVID-19 vaccination. The price level in the US is sky rocketing with inflation, loss of jobs and productivity and closing down of a few well known malls Bon-Ton, Ames, Waldenbooks, Borders, Wet Seal, Limited Too, JCPenney, Brooks Brothers and similar such large departmental stores and malls. General Motors and other well-known automobile companies are at the verge of bankruptcy. Americans used to low inflation are now beginning to incur higher prices of essential commodities and goods with economic strains coupled with Covid wanes. Interest rates are at the lowest with no earnings on deposits. Government securities market not favorable. The Stock market with star stocks like Apple, Amazon, etc., is the only hope for investors. Government spending on infrastructure, etc., may leave additional burden on tax payers.
With this background we may try to positively think about the impact of the new Biden regime in the US on India barring political compulsions on both sides.
Let’s hope the already existing good relationship between the US and India strengthens further under Biden’s regime.
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