What happens to the Indian Tech sector post the US Presidential Elections?

Irrespective of the outcome of Tuesday's US Presidential Elections, America's strategic relationship with India will maintain the current momentum. Infact, it will strengthen further, as the policy documents and remarks from the two campaigns indicate. While Trump claims to be "best-friends" with Indian PM Narendra Modi; Joe Biden has a strong track record of being an ardent advocate of a strong India-US Relationship.

According to a BS report, just today, the IT Stock Market rose by 4% as Biden gained a lead over Trump. Further, it would be a win-win situation for the Indian IT sector in both scenarios. Biden has indicated relaxation in H1B visa norms while Trump's win is expected to boost the US dollar, which, will be positive for Indian IT companies as Indian software exporters derive a large share of their business from the US.

How will US Presidential Elections affect Indian Tech Sector? Well, it's a win-win.

If Biden wins, sectors like renewable energy and education will see a win. Plus, Biden victory makes India better in technology, pharma and healthcare, insurance and most of the consumer sectors. On the other hand, if Trump wins, sectors like oil, defence and infrastructure will do well.  Further, his win also creates the right-wing leadership socially and economically stronger in both countries.

Look at it this way, Biden’s foreign policy could be tough against China. Yet, it will be more multilateral and predictable. He will not put the policy restrictions that Trump is likely to put. The major focus of Biden is to accelerate the adoption of electric vehicles. He aims to expedite the transition to renewable energy. While the sector is seeing a major upward trend in India (in production and usage terms); a Trump victory will put China's data-privacy issues behind.

Moreover, Indian IT jobs are protected when Biden wins while Trump victory signifies the rise of Indian IT in the homeland. Under Biden, India will see an increased FDI, while Trump victory reduces foreign dependency for Indians.

American support?

A less known fact is that Amazon, Google and Microsoft are among the top five contributors to Joe Biden's candidate campaign committee in the 2020 cycle. OpenSecrets, a website which tracks money in politics and campaign finance records stated. The law prohibits such donations from the firms themselves. Thus, these contributions were either made by the company's political action committees (PACs) themselves, members of the PAC or their employees.

So, if you remember correctly, Trump Administration called on big tech to answer for their privacy features, the cases on them, their role in the politics, etc. If these big techs are supporting Biden administration, it clearly states that they think Biden will benefit them. It shows confidence from these American companies and in turn a voice in an onslaught of federal and state investigations into their business practice.

Although in this situation, it's apple vs pears; in this US Presidential Elections, the real takeaway stands awfully in favour of Biden.