The relation between Narendra Modi’s victory and the US economy

The world’s biggest democracy and the second biggest country in the world is all set to be guided by a new leader. Yes, it is India and the new leader is Mr. Narendra Modi. He is the head of Hindu-nationalist Bhartiya Janata Party and has served as the chief minister of Gujarat for a long time. Narendra Modi’s victory is expected to bring improvement in the economic ties between India and the US.


This seems controversial, because back in the year 2005, the US government had denied him a visa on account of the suspicions of his role in the Gujarat riots. However, Supreme Court appointed a special committee to investigate the entire issue and found nothing shady on Modi’s part. Thereafter, the US realized its mistake and several times the US diplomats have tried to reach out to him in order to improve the relations.

On Modi’s victory, the US deputy national security advisor, Benjamin Rhodes tweeted, “US congratulates BJP on its victory in India’s historic election; we look forward to working w/ govt once formed to advance our partnership.” Moreover, the White House proclaimed that Modi is welcome to visit the United States.

The US diplomats are impressed by Modi’s track record in Gujarat and are eager to increase the economic ties with India. Right now, it is too early to comment that what all sectors are going to benefit immediately. The environmental goods, information technology, pharmaceuticals are some of the major sectors in which India and the US are going to work together on a large scale.


Since many years, US exporters confront various tariff and non-tariff barriers those hinder the import of US products into India. With every passing year, the value of the US imports has seen a downfall owing to numerous barriers. However, Modi’s victory has brought some hopes for the US exporters, as in he will soften down the export-import policies between the two nations.

Another US sector that is hopeful of gaining benefits out of the Modi government is the defense sector. This hope is rooted in the fact that BJP has talked openly about reviewing the guidelines of foreign direct investment in the defense sector. If Modi lifts the current 26% limit, then more US companies would be able to enter India.

Thus, it can be concluded that Modi’s victory is certainly an impetus for the US economy. This victory is going to strengthen the economic ties between both nations.

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