The world is still coming to terms with a 9/11 that shook America. Little did we know that another 9/11 was in the waiting, this time shaking politics and economy alike. On Wednesday, November 9, 2016, Donald Trump defeated Hillary Clinton, proving all exit polls, economy watchers, journalists and pundits wrong. The way the markets reacted to it was even more disturbing. The Sensex and Nifty, that were already struggling with the currency demonetisation blow, dealt another blow with Trump’s victory. The markets closed over 300 points down on Wednesday. Not just the Indian markets, the UK markets, US’s Dow Jones and Asian markets, were all shaken by this 9/11 sending out a message that it was just not prepared for Trump.
While this was just the beginning, it was a trailer into what could possibly be even worse. India has a lot to watch out for as Trump begins his tenure as POTUS. Trump has always been vocal about his plans to take away jobs meant for the Americans from immigrants. In line with this, he may soon be bringing about tougher policies viz-a-viz the H1-B visa, hampering the opportunities for Indian professionals to gather experience in the US markets and get that to India. Trump has also proposed a major tax cut for the American firms, which may result in all the multi-national IT firms going out of India and back to the US. This will directly hamper Prime Minister Narendra Modi’s Make in India plan, thereby, shaking the Indian economy. It firms moving out of India is also likely to result in major job cuts at a time when India will be needing more jobs than are existent.
The only silver lining is Trump’s hint at being a fan of India and Modi. If he actually favours India and PM Modi’s policies, India may have an opportunity of building pleasant relations with the new US President, thereby, making chances of the Indian economy sail through the Trump regime. For now, the picture looks hazy, but there is certainly a sense of uncertainty and fear that was evident in the way the markets reacted to Donald Trump’s victory.