How important is the impact of the US presidential election on short-term sentiments?
There will be an immediate boost in sentiments after the new president is voted, as people will briefly feel more optimistic. The event will not be very significant for equity markets or global economy, which is fighting a large crisis. There is very little flexibility now for the US economy. The new president will inherit an economy in deep recession—a challenging mandate. In terms of policy support, do you expect fiscal measures? We need both monetary as well as fiscal measures from policymakers. Initially, policymakers were slow and because of that, the confidence has been damaged. Fiscal spending from the government will help improve confidence. Cutting taxes is a more effective way, but in India only (a) small percentage (of people) pay taxes. Also, implementation of policy in India can be inefficient. The policy, however, will be pro-growth. After the commodity complex breakdown and steep price fall in equities, does India look better? There is no significant change in India as a
