How the Election Results & US-Indian Trade Relation is Connected?

With over 900 million voters who were eligible to record their vote that could decide the face of the world, only 67.11 percent voter turnout was recorded for the latest Lok Sabha elections. However, the voter turnout was 1.16 percent higher than the last turnout in 2014. Being one of the world’s largest democratic exercises, the results will have a huge impact on the global organizations like Amazon, and Walmart. Expecting a positive outcome, Investors are observing the election results, as they are preparing for the trade issues and regulation of the foreign companies.

Despite being one of the fastest growing economies in the world, recent stats show that the unemployment rate at 6.1 percent is the highest in 45 years. Lately, Indian government released new e-Commerce rules on foreign companies, which supports the foreign companies’ expansion in the country. This will somehow release a small amount of pressure, but it’s the ultimate showdown that defines the future of India. You can say the next five years can be regarded as the crucial phase in determining India’s face and identity in the global markets.

The fact that half of India’s population is below the age of 25 has opened the eyes of companies like Netflix, YouTube and Amazon. India’s 500 million internet users are the exact figures that attract the foreign investors. These foreign companies now realize that India is a pool of opportunities and aims to bring localized contents that are generated for the Indian consumers.

When it comes to the US, they are expecting some meaningful reforms earlier in the term of the next five years and likely to be more focused on drawing more and more foreign investment than the usual increase in imports. Most of the international journalists point out that the result will be crucial to the future of India as the country is soon to be the world’s most populous country surpassing China.

With this election, Modi is going to triumph and the prospects for a breakthrough in US-India will bring out the best in both the market driven economies. One thing is for sure, the ongoing disputes in trade and investments will continue to rise if proper change in approach is not taken in the beginning. This recent Indian election and upcoming US Presidential election in 2020 must resolve the ongoing disputes to cement the association between these two huge heavyweights. Investors and executives are not yet clear about which version of Modi is going to prevail, the business-friendly leader or the divisive nationalist, thus hoping for the better opportunities to build their business.

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