Whether or not Joe Biden’s rule will initiate a long-term change in America’s economic policy is an issue where cautions are probably in order to analyze it over time.
India and the United States, the world’s two major democracies, share a strong economic relationship, in which America is the largest consumer of Indian goods and services and the fifth largest source of FDI. More importantly, India enjoys a trade surplus with America which has been declining in recent years. India is working towards increasing imports of oil and gas from the US, raising concerns in Washington that New Delhi also sees value in balanced ‘trade relations’.
If Joe Biden can bring the American economy back on track, this is certainly good news for India. But when Biden will challenge China on trade with other powers, India will face a challenge that may arise due to the US decision to re-join the Trans-Pacific Partnership.
Where India will definitely benefit is that under Joe Biden’s leadership, America will once again become the champion of economic globalization. India has been a major beneficiary of the global economic system, and if this goal changes, it will only increase challenges for India as an emerging economic power. Joe Biden’s administrative system, which is more predictable, may prove better for India in terms of formulating strategic responses to challenges presented by the US on the trade and economic front. Economically, given the interconnected nature of the two countries, the American who has the ability to organize his economic structure can prove to be helpful to India as it can act to catalyze global demand for India.
It is more likely that on the issue of trade and immigration, Joe Biden’s tenure is very different from Trump in his methods of functioning, but given the underlying changes in the American political landscape, in many respects, there is likely to be continuity compared to changes. American policymakers must first look at their domestic challenges and adopt policies to deal with these problems adequately before they focus on improving their image in the world. America is divided politically and ideologically, and the Democratic Party, which Biden leads, is also becoming fragmented. Joe Biden will have to deal with this division born in America for the first time in his tenure and bridge this gap, rather than take any step to fulfill America’s broader global agenda.