7th November, 2012 ! The world witnessed a historical win of the first black president of United Statesready for his second term. Barack Hussain Obama is a revolution in itself. While his predecessor initiated wars, he ended them. Obama has not only survived the testing times of an economy suffering from recession but has also introduced many policies that are favourable for India.
So what are India’s hopes with the second term of Obama? In today’s world of globalisation we cannot expect to just sit and watch the changes going on in the world’s largest economy. The economies of the world are intertwined and so is United States’ and India’s. With the re-election of Obama India’s hopes for economic development has risen. Obama’s policies are way more favourable for India. Indian exporters would be benefitted as there would be an increase in demand in the U.S. Outsourcing, i.e. ‘contracting out of a business process, which an organization may have previously performed internally or has a new need for, to an independent organization from which the process is purchased back as a service’, which became popular in the United States in the 21st century will be taken up by the new administration under Obama.
Associated Chambers of Commerce and Industry of India (ASSOCHAM), an apex trading company in India said that U.S. economy will revive faster as the Indian economy is deeply integrated with it. ASSOCHAM’s president, Rajkumar Dhoot said that the U.S. will hugely invest in the infrastructure development opportunities that India provides and hence will help in developing a cordial relationship between Indiaand United States. U.S. is the largest economics partner of Indiawith 60 percent of India’s software directed towards it. The reform processes going on in India will help in its economic development and thus will encourage Unites States to invest in India. US-India energy cooperation will reach a greater point with possibility of North Americabecoming an energy superpower with the discoveries of Shale and Oilsands.
It is also predicted that the loose ‘monetary policy’ regime will have a positive impact on India as it is important for fund flows. Due to Obama’s healthcare bill, the Indian pharmaceutical companies will be hugely benefitted. But the IT sector will have to be more cautious because of Obama’s outsourcing norms as gains from weak rupee will be negated. The stock market will also not be affected immediately as U.S.stock valuations are expensive.
So overall, India can expect a good economic future with the re-election of Obama and co-operation of both countries will help them in the long term.