InvestorQ : How has Trump’s election impact the IT industry and the oil prices in the last two years?
Abhisha Yadav made post

How has Trump’s election impact the IT industry and the oil prices in the last two years?

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Abhisha Yadav answered.
3 years ago
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The IT industry may have some worrying to do. Trump has promised stricter immigration laws, stringent visa rules, reserving more jobs for Americans, raising the minimum wages to make immigrant labour unviable etc. All these will have a negative impact on Indian IT industry. However, according to expert observers like Gartner, the real impact on Indian IT will be less due to Trump and more due to a slowdown in the IT spending by American companies.

Oil consumers could actually benefit from the Trump policies. Over the last 10 years, the US has invested heavily in Shale drilling and that has led to US oil production rising to record levels. Trump wants to focus on a big boost to the US oil industry by bringing more of land and water bodies under the drilling ambit, expand production of oil substantially and expanding US share in the global oil market. This will mean that notwithstanding the best efforts of the OPEC and Russia, oil prices will remain low. Over the last 2 years nearly $1 trillion worth of wealth transfer has flowed out of oil producers to oil consumers due to sharply lower prices of oil. This has come in the form of an oil dividend for India and Indian companies have immensely benefited from this trend which is reflected in improving operating margins of Indian companies. That is likely to continue under Trump.

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