After donald trump became the President of America, there have been major changes in political, economic and security relations around the world. Organizations like europe and NATO are no longer trusting America that much, people of canada have started selling their property in America and China is also trying to reduce its dependence on America. Amidst all this, global investors have learned a big lesson, "Just running after profits does not work, there should also be trust in the political stability and rules of the countries."
Disillusionment of investors from Russia and China
Russia was once a part of 'BRIC' (Brazil, russia, india, China), but due to Putin's aggressive policies (attack on Georgia, Crimea, Ukraine), investors had to run away from there after suffering huge losses.
Trillions of dollars were invested in china in the last 30 years, but now investors are asking, "Is it safe to invest money in china now?" Many companies are leaving china due to its unpredictable rules and geopolitical risk.
Exodus from America may also increase
Today, foreign investors have an investment of $31 trillion (shares, bonds, property) in America. But due to Trump's 'America First' policy and global uncertainty, investors are now withdrawing money from America. If even 10 percent of the investment comes out of America, it will be equal to $4 trillion (400 billion)!
Will india be a big beneficiary?
A part of this money can come to India. If even just 5 percent (200 billion dollars) comes to india, it will prove to be a big booster for our economy. Today, foreign investment (FDI, portfolio, loan) in india is only 2.5 percent of GDP, whereas it should be 5 percent (200 billion dollars annually).
India's stock market (4 trillion dollars) and bond market (2.5 trillion dollars) can easily absorb such a huge investment. Companies like apple have already started making iPhones in india instead of China. More companies may do this in the future.
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