A Republican Congress may Augur well for Indian Equities

Economic Agenda Trump’s stated policies appear to be aggressive, as compared to Clinton’s, which does not necessarily mean that they may be bad. Taxation • Has proposed a comprehensive tax reform for US Citizens that would reduce the top personal income tax rate from its current 39.6% to 25% • Reduce corporate and other business income tax rates to 15% and eliminate the estate tax. • Focused on introducing tax amnesty deal with corporate America to encourage the repatriation of the estimated US$2.4 trillion currently held by American companies offshore, by offering one-time tax rate of 10%. Infrastructure Spending • Has proposed US $2 trillion in infrastructure spending over the next decade (an average of 0.9% of GDP per year). Healthcare • Has proposed a complete repeal of the Obama Healthcare Act which has had a negative impact on US discretionary consumption by significantly increasing the share of healthcare spending in the overall consumption basket. End of Gridlock • A republican Congress (House + Senate) implies that Trump will be able to likely move ahead with a number of his stated pro-growth reforms. Renegotiate trade deals • Being a practical businessman, Trump understands the importance of trade and economic agenda and it is therefore likely that Trump will focus on renegotiating trade deals as opposed to abolishing them.