5 Ways Trump Can Impact The Indian Economy
So the US has elected its 45th President and its unexpected, unbelievable verdict of one of the largest democracies in the world . As this news is sinking in, many fears,doubts and speculations are emerging on the surface . The most important of them are how it's going to impact Indian Economy and how India-US ties would be affected .
Now on day one of the result , we can simply speculate and evaluate the pros and cons but there are major areas which would have sure shot impact .
Outsourcing to the US
Every presidential candidate has time and again played the card of Employment generation . Obama did the same in past but it's more like playing a safe game and US citizens like Indians are looking for better opportunities , better economy, and better jobs . So it's more like pacifying the voters . Now the question is the chances of this happening . India provides better services at a cheap rate and even as per Trump's proposal of levying 15% tax would sound cheaper than actually setting up the whole cost indigenously .
That's worth worrying about Indian Export lead growth going forward . Indian IT Companies TCS , Infosys , Wipro are heavy users of the H-1B Visas and he has been a critical time and again of giving away entry-level IT Jobs to Indians . But they are legal migrants nd are highly skilled and hardworking professionals . Also, he has contradicted his own stand on H-1B visas time and again and it kind of dilutes his stand in the same . He also told students coming to study at Harvard , Yale and other major universities need to be retained . Yes, it would cause a further brain drain , but that needs to be curbed at domestic level back in our own country than blaming Trump for the same .
So Trump once said he would get Apple to build its computers in the US rather than in other countries . He would slap 35% duty on cars manufactured in any other country . He would tax China on its products coming in . Trump's anti-free trade crusade appeals to many . Trump wanted voters to believe that India , Mexico , China are ripping the US off . But actually, Trump has hit a sensitive pulse of Americans . But Catch is US products cannot be competitive if they cannot get cheap labours . Trump may be bad at many things but he is a good businessman and in this tough scenario when the US needs a leadership to fight the slowdown , everyone would be counted and highly audited .
So trump does not seem to be racist but he does look Islamophobic and intolerant against the illegal immigrant . HE did talk about fighting and eliminating ISIS and right now when every country is looking for an ally to curb terrorism , it would be welcoming.But his stance against Muslims does not go well with India as a secular nation where Muslims are the largest minority . Alignment of our foreign policies and working amicably may seem difficult . We can expect expedition of nuclear deals agreement and support in fighting against terrorism with neighbouring country .
The best part of Trump becoming US President and we all speculating our stand comes at an appropriate time . We talk about IT and most of our IT industry is based on outsourced services . We hardly have any share in building products , research and innovation . This is high time we stop ourselves from becoming a pool of skilled and cheap engineers but actually quality talent who can change the dynamics of Indian Economy . It's time we look inward and work towards becoming self-sustaining economy . The Sad part in Indian Software services accounts for $82 billion worth of export in 2014-15 and bulk was from the US . So it may be an ideal time to start working toward making India a strong Economy with lesser dependency on one country .
Right now when we all are hoping for environment to change globally , this Trump card will need some more time in revelation .