New Delhi: There is a tough competition between Kamala Harris and Donald Trump in the US presidential election. There is a huge difference in the policies of both the leaders. Especially in the policies of trade, defense and pharma sector. These have a direct impact on the Indian economy. Also, the views of both the leaders regarding immigrants are also quite different.

Let us know what is the difference between the economic policies of Harris and Trump regarding India and who will benefit the Indian stock market and economy more if they win.

What will be the impact on the stock market?

America is obviously India's biggest trading partner. America is the biggest market for India's IT, Pharma, companies. In such a situation, American policies are bound to have an impact on the Indian market. This is the reason why Indian investors are adopting a very cautious approach before the election results.

Historically, Kamala Harris' Democratic Party being in power has been more beneficial for the Indian stock market than Donald Trump's Republican Party. If we look at the data from 2005 till now, Nifty has given better returns during the tenure of Democratic Party presidents.

Attitudes towards migrants

Kamala Harris, the candidate of the ruling Democratic Party, has a very balanced view on immigrants. She advocates giving American citizenship to undocumented refugees, especially children. She is also in favor of expanding skilled worker visas such as H-1B. On the other hand, Trump is in favor of strict border control.

In this case, Kamala Harris's stance is more beneficial for Indians. A liberal attitude towards immigrants can provide an environment of stability and security to Indian families living in America. On the other hand, Trump's strict policies can have a bad effect on unskilled workers. But, it is unlikely to have any impact on IT services, which is a good thing for India.

Big difference in trade policy too

Kamala Harris's view is also liberal in terms of trade policy. She emphasizes on multilateral trade agreements and regional cooperation (eg, Indo-Pacific Economic Framework). But, Trump's policy is to promote domestic industry. He is in favor of imposing heavy duty on foreign imports. America's trade war with China started under his leadership.

In this regard, if Kamala Harris wins, there is no possibility of any major change in the existing trade relations between India and America. But, Trump's policies can create turmoil in global trade, which is already going through a period of instability. However, this will also give Indian companies an opportunity to take the place of Chinese companies in America.