Biden nears presidency: Implications for India
Barring any last-minute surprises, Democrat Joe Biden appears set to win the US presidential election. Indian market would welcome Joe Biden's victory as he is expected to be more lenient in trade policies, unlike Trump who adopted a strong stance against India.
Last year, the Trump administration had revoked India’s GSP (Generalised System of Preferences) status. It had affected Indian exports worth about $5.5 billion. Apart from that, issues like restricting H1-B visas for Indians had escalated tension between both the countries.
In our opinion, India will remain an invaluable strategic partner to the US irrespective of who wins the election. However, Joe Biden is thought to be more trade-friendly. Dealing with him should be in sharp contrast to Donald Trump who often adopted a tough stance on US' all foreign trade partners, including India.
Cement consumption showcases a sharp rise in construction activities
The cement industry is witnessing steady underlying demand. In October, the industry reported double-digit growth for the second consecutive month. Demand for cement is constantly rising despite the hike in prices. It indicates the organic nature of demand.
The development is even more welcoming considering that the demand is picking-up at urban centres. There was greater traction from infrastructure, real estate and industrial projects. While rural demand for cement continues to remain robust on the back of a strong rabi season this year.
Since Cement is not an “impulse buy” commodity, cement demand is the most reliable indicator of economic activity. The uptick in cement sales reflects an actual rejuvenation in all the construction-related activities. We think its benefits will trickle down to the weakest sections of society.
Production Linked Incentive (PLI) scheme likely for agrochemical sector:
The government is planning to bring a production-linked incentive (PLI) scheme for domestic agrochemical manufacturers. Speaking at a FICCI organized event, Minister of State for Chemicals and Fertilisers Mansukh Mandaviya said that the scheme will help the sector to become globally competitive and help in increasing the exports.
Such PLI schemes are fast becoming an integral part of the government's attempts to boost Make in India. Recently, a similar scheme has been successfully implemented in Pharma and digital sectors. Through PLI, the government intends to encourage API (Active Pharma Ingredients) and smartphone manufacturing in India in those respective sectors.