InvestorQ : Do you think, Biden will try and favour China more than India and what happens to India in that case?
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Do you think, Biden will try and favour China more than India and what happens to India in that case?

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Tisha Malhotra answered.
7 months ago
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That is not an unjustified belief because the Democratic parties have traditionally been leaning towards China and less towards India. We saw that during the period of Clinton and also of Obama. There is also a view that Biden has a soft corner for China and would at least want the relations to normalize.

So, India must be prepared for Biden adopting a softer stance towards China as compared to Trump. The Trump belligerence is likely to be missing. That has actually enthused Asian markets as it is hoped that the global slowdown and the trade war may now end much faster or at least the effects would taper.

Like most Democrats in the past, including Hilary Clinton in the last election, Biden is likely to lean more towards China and to that extent India must not even expect the kind of antagonistic approach that was adopted by Trump towards China in terms of tariffs.

But there is a more important lesson for India. History has shown us that American politics and diplomacy is very transactional in nature. Indian pharma and IT industries are seeing better times in the last few months post COVID, because the US does not really have a choice.

For starters, the US currently needs Indian pharma companies to deliver the vaccines in bulk and at low costs. Corporate America needs Indian IT to help US corporations adapt models to the post-COVID digital era. To the US, that is all that matters. India should stop worrying about the president and focus just on this mutual interest aspect of the relationship.

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