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Trump & India : A Reality Check

The election of Trump as POTUS had got the right wing in India in a celebratory mode; there were hopes of this event having a positive impetus on the Indo-US relationship. This hope was, at the outset, a wildly optimistic hope, given that Trump was elected on a protectionist rhetoric, a message of bringing jobs back to The USA; this was, however, ignored in the larger light of his views on terrorism as well as other factors, which seemed to indicate good tidings.

In the approximately 100-odd days since his taking over as POTUS, however, early indicators have given enough reason for the more optimistic among us Indians to become far more realistic; Trump as a President has done exactly as he has promised – which is admittedly a surprise even to me. Frankly, on one side, it is good to see a politician walking the talk in the USA. That said, the other side of the equation has given rise to many, many deep rooted questions which need answering for us.

His focus on creating Jobs in the USA are beginning to give results for the Americans; good for them. But, it has come at a cost. In a connected world, any movement either side in any place will have an attendant cost side on some other side. And in this, we are on the other side, as more Jobs in America mean lesser Jobs in India, as visa rules tighten up, and Indian companies are forced to invest in the USA not just in infrastructure but in hiring as well. This means, as per at least one article, loss of jobs in India, to the ratio of 4:1. This makes perfect sense, given the per capita difference and wage rules difference.

From this one example alone, it can be seen that the coming of Trump is nowhere near being exactly a great thing for us Indians, at least not in the business atmosphere. Now whether it is a bad thing remains to be seen; just cause it isn’t good doesn’t automatically mean it is bad. It depends on a variety of sectors {I have taken but one example} as well as on our response on the diplomatic and business fronts. That is something that we shall see in the fullness of time. But for now, there is enough reason for us to become realistic, stop eulogizing Trump and the USA, and analyse dispassionately.

Having said that, there are early indicators of rising stress in some other areas as well, where either disputes are pending, or where the Trump administration is showing signs of toughness. Taxation in startups and corporates is one such area that comes to mind; the USA reviewing nations with which it has a trade deficit is another area of potentially rising stress. Note that early last month, The Trump administration launched  a 90-day investigation of countries, including India, against which the US runs a bilateral trade deficit – just another example.

Just think of this for a moment; a rich country, doing its best to profit for itself, at the cost of a poor country. Think of the amorality of this hard move. You can call it business all you want – but if you know that your move will harm a country with which you are trying to be friends, I am pretty sure that a middle path can be found, so long as there is genuine desire on both sides of the equation. India has shown its desire to be friendly; now the ball is in the the US court to respond. I am not hopeful! Not only is this amoral, it does not sound a very friendly move on the part of the USA!

If that isn’t all, this – aah – trend of moves that have the potential to disturb India doesn’t stop at trade. It extends to the Geopolitical and Strategic levels as well, where there is a lot more clarity needed on direction as on date. So far, the USA has not only shown no indication of acting against Pakistan, it has in fact done the reverse,  trying to re-hyphenate India-Pakistan, offering to intervene in our bilateral matters. More recently, it gave indications of cutting aid to India, while keeping Pakistan untouched!

Put it all together – and the reality stares at you. India-USA are as far apart as they were before; yes-  there are possibilities of great relations, a potential which was absent earlier. Agreed, and granted. But the very real differences in world view, economic realities and priorities, internal realities, and geopolitical differences mean that we need to keep our eyes peeled, and our options open; we need to ensure our interests are protected. And this is where the right-wing can help by stopping the rhetoric!

REFERENCES:

  1. Delhi Solar Policy plans to solve energy crisis; here’s how solar panels will power your homes     
  2. Trump card: Delhi to get tough if US blocks Indian exports
  3. Solar energy subsidy: After attempts for amicable solution fail, India drags US to WTO dispute settlement body
  4. India rejects US offer to mediate with Pakistan
  5. US plans to gut aid to India but continue with $200mn to Pakistan
  6. Every American Infosys hires in US will lead to loss of 4 jobs in India

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