RESEARCH PROBLEM
EXPLORATORY RESEARCH ON " THE IMPACT OF THE AMENDEMENTS
EXECUTED BY NEW US PRESIDENT DONALD TRUMP OVER THE INDIAN
ECONOMY "
INTRODUCTION
The United States is a federal [Link] United States presidential election
of 2008 was the 56th quadrennial presidential election. It was held on
Tuesday, November 4, 2008. The United States presidential election of 2012
was the 57th quadrennial American presidential election. It was held on
Tuesday, November 6, 2012. The Democratic nominee, incumbent President
Barack Obama, and his running mate, Vice President Joe Biden, were elected
to a second [Link] United States presidential election of the year 2016 was
the 58th quadrennial presidential election. The electoral vote distribution was
determined by the 2010 census from which presidential electors electing the
President was chosen; a majority 270 of the 538 electoral votes were
required to win. Incumbent President Barack Obama, a member of the
Democratic Party, was ineligible to be elected to a third term due to term
limits established by the Twenty-second Amendment to the United States
Constitution. Businessman and reality television personality Donald Trump of
New York won the Republican Party's presidential nomination on July 19,
[Link] was the first election with a female presidential nominee from a
major political [Link] won the popular vote, taking 48% of the vote
compared to Trump's 46% of the vote, but Trump won the electoral vote and
thus the [Link] election is one of five presidential elections in
American history in which the winner of the popular vote did not win the
presidency.
One thing is clear from the Republican and Democratic campaigns, the
change in the Presidency of the United States will impact the trading partners
of America and their respective economies. The implications for India
comparing to China and Russia are somewhat different. Trading with Russia
and China could be drastically impacted by the new US President. As per the
GDP growth with respect to the previous year is 7% .It appears that India is
doing so well at the moment, that it will be less affected by the election of
the new US President Donald [Link] one Republican candidate that has
made international trade a major reoccurring theme is Donald Trump. He
claims that America has negotiated horrible trade deals. He asserts his
success as a real estate dealmaker would mean he could negotiate better
trade terms. This trade agreement would continue the process by which we
have been shipping good-paying American jobs to low-wage countries
overseas and continue the race to the bottom for American workers. The
implications of a change in American trade terms is different for India than it
is for Russia and China, due to Indias strong economy. It is predicted by the
World Bank that India will be the fastest growing economy in the world for the
next three years, and remarkably it has the potential to surpass China. Simply
put India does not need improved trade deals with the United States. It is
doing just fine as is.
This trade agreement would continue the process by which we have been
shipping good-paying American jobs to low-wage countries overseas and
continue the race to the bottom for American workers. The implications of a
change in American trade terms is different for India than it is for Russia and
China, due to Indias strong economy.
Prominent leaders of India's freedom movement had friendly relations with
the United States of America which continued well after independence from
Great Britain in 1947.
The economy of India is the seventh-largest in the world measured by
nominal GDP and the third-largest by purchasing power parity (PPP).The long-
term growth prospective of the Indian economy is positive due to its young
population, corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. The
Indian economy has the potential to become the world's 3rd-largest economy
by the next decade, and one of the two largest economies by mid-
[Link] also topped the World Bank's growth outlook for 2015-16 for the
first time with the economy having grown 7.6% in [Link] is
expected to decline slightly to 7.1% in the 2016-17 fiscal year.
India has one of the fastest growing service sectors in the world with annual
growth rate of above 9% since 2001, which contributed to 57% of GDP in
2012-13. India has become a major exporter of IT services, BPO services, and
software services with $167.0 billion worth of service exports in 2013-14. It is
also the fastest-growing part of the [Link] IT industry continues to be
the largest private sector employer in India. India is also the third largest
start-up hub in the world with over 3,100 technology start-ups in 2014-15.
The agricultural sector is the largest employer in India's economy but
contributes to a declining share of its GDP (17% in 2013-14). India ranks
second worldwide in farm [Link] Industry sector has held a constant
share of its economic contribution (26% of GDP in 2013-14).The Indian auto
mobile industry is one of the largest in the world with an annual production of
21.48 million vehicles (mostly two and three wheelers) in FY 2013-14. India
has $600 billion worth of retail market in 2015 and one of world's fastest
growing E-Commerce markets.
Real GDP growth or Gross Domestic Product (GDP) growth of India at constant
(2011-12) prices in the year 2016-17 is estimated at 7.11 percent as
compared to the growth rate of 7.93 percent in 2015-16. Quarterly GDP
growth rates are : Q1 (7.2%), Q2 (7.4%), Q3 (7.0%).
GVA growth rates of Agriculture & allied, Industry, and Services sector are
4.37%, 5.77%, and 7.87%, respectively. Manufacturing growth is at 7.7%.
India has registered highest growth of 11.2% in 'Public Administration,
defence and other services' sector and lowest 1.3% in 'Mining & quarrying'
[Link] current prices, GDP growth rates for year 2016-17 is 11.52%.
Growth for Q1, Q2, Q3 are 10.8%, 11.8%, 10.6%, respectively. GVA growth
rates of Agriculture & allied, Industry, and Services sector are 9.64%, 8.32%,
and 11.87%, [Link] constant prices GVA (Gross Value Added), GNI
(Gross National Income), NNI (Net National Income) growth of India is
estimated at 6.67%, 7.17% and 7.24%, respectively. At curent prices these
figures is 10.43%, 11.60% and 11.61%.
INDIAN ECONOMY AND ITS GROWTH PROJECTION
This change in trend in the GDP growth rate shows too much fluctuation over
the year from 1980 to 2016.
We modeled the past behaviour of India Gross Domestic Product" Annual
Growth Rate" using vast amounts of historical data and we can adjust the
coefficients of the econometric model by taking into account our analysts
assessments and future expectations.
comparing the growth rate of the indian economy,a high growth ocur in the
year of july 2014 of around 8.4, whereas in the year january 2017 is quite
lower than the increase in the GDP than the previous year. This may due to
the effect of the changes made by the new presidency of US, which directly
and indirectly affect the indian market.
While, we expect market volatility to continue as investors adjust to the
reality of a new balance in power in Washington, here are some key areas in
which policy decisions could have an economic [Link] in other
countries due to the amendments of the US President.
During his campaign, he pledged to cut the top marginal corporate tax
rate to 15% from 35%, which should have the desirable side effect of
curbing inversions i.e., transactions that allow a U.S. company to
merge with an overseas firm and pay a lower tax rate.
Trump has pledged to revise the North American Free Trade
Agreement(FTA). Trump has called for tougher rules on trade with
China, who he says has taken advantage of U.S. trade negotiators for
years. He could also attempt in various ways to crack down on U.S.
firms that move jobs, plants or operations overseas.
The US president has the power to execute policy changes that can
move markets.
APPROACH OF THE PROBLEM
Since, we have an exploratory research on how the executed
amendements of Donald Trump will effect the indian market and directly
or indirectly effect the economy. We thus collect data by means of
secondary sources and primary sources which are directly based on the
news , peoples perception , indian growth history and how it will be
changed after the implementation of the amendements made by Donald
[Link] research is based on how peoples reacts on the proposed
executive orders . We collect information from sources: internet and
questionnaires. Internet has influenced a vast number of consumers using
this media, for gaining knowledge relating to the virtual type of products
available. Thus, processing the data regarding which peoples perception
changes with the amendements of new rules. Preparingasetof
questionnaire which consist of several questions inluding some objective
questions and other point basis.
we generally float google sheets to reach the responsee via mails. our
sample consists of young student body of MBA students who are our
future [Link] their point of view regarding how they respond to
the new amendemnts made by US president Donald Trump.
We analyse the various data that we get from the students and from
online search , thus we an get an insight of how the perception of different
people who are the residents of India think about the new executive
orders of Donald Trump. The ways of how this will effect the growing
economy of India can be estimated by looking at the perception of
different peoples.
LIMITATIONS AND CAVEATS
There are many risks , if it is not planned properly and executed precisely,
and also if the results such that people cant able to digest or apply it.
While, we are going for survey , some feelings are hidden from the
conious mind , and are very hard to express. This presents problem during
analysis.
some other limitations are:
1. People cannot easily express how they feel : It is impossible to identify
and remember specific emotions , as they occur in real time . Asking
people what they exactly think. Current surveymethodologies require
hundreds or thousands of participants , because people donot say what
they feel.
2. Questionnaires are often more time consuming : According to the
feedback from responsee's the questionnaire is long and often time
consuming , but accordingly we can't make it short and because of that
we make the answers in a range basis from strongly agree to strongly
disagree and the responsee's need to rate it accordingly what they feel
like. This is the time consuming exercise.
3. Data providers are not strategic advisors: By fousing on the raw
metrics, market researchers becoming data providers , instead of strategic
advisors.
$. Targeted number of sample size can't be matched as per the
requirement.