The newly elected President of the United States has a soft corner for India. Soft corner for a nation that is emerging as the fastest growing economy globally works perfectly for the most developed country in the world.
Will Trump-Modi’s bromance turn into bizmance? Only Modi’s imminent visit to the United States could answer this question.
Just on his fourth day in office, Trump phoned Modi making him the fifth world leader who was contacted after the Prime Ministers of Canada, Mexico, Israel and President of Egypt.
India Touted As The Next World Leader
The pace of development in India is sending signals to the world that India has the potential to become a world leader. Among one of the highest populated countries in the world, India is seen as shore for resources waiting to be explored for growth. Global giant worldwide are aiming at making their way into the country.
Before assuming office, Trump had praised India’s fast growth rate and Modi’s bureaucratic and economic reforms.
‘Under a Trump administration, we are going to become even better friends, in fact I would take the term better out and we would be best friend. He said he is looking forward to working with Modi and called India a key strategic ally,’ Trump said in October last year.
Fast Emerging as a Financial Hub
Under Narendra Modi, the country has taken a step ahead to make India one of the global financial hubs. Aimed at making trading in India for players worldwide easier, Modi launched India's first international exchange India INX at the Gujarat earlier this year.
With an ambition to win back market share from global financial hubs Singapore and Hong Kong by attracting high-frequency traders, the exchange is expected to be one of the fastest exchanges in the world.
India is also on the radar of a host of international banks and insurance as well as reinsurance companies who are looking to claw in lucrative opportunities that lie in a more than 60 percent unbanked India.
Opening Up To Trade & FDI
Trade, export & import, are important contributors to the growth of a nation. With India opening up investment for most for the sector including the high-money garnering defence sector, the US has shown great interest in the Indian market.
US-based companies have been establishing quarters in India since the 2000s and most of their top league are headed by Indian brains. From Sundar Pichai steering Google to Satya Nadella at the helm of Microsoft, US has gained heaps of talent to run its companies successfully.
Nearest Competitor to China
China has been emerging as a threat to the growth of the US with its cheaper manufacture and exports. India is seen as the only country that has the potential to overtake China in terms of cheap labour & costs, which could well be used to dampen China’s growth.
Even the startups emerging out of India are seen as close or better replicas of those arising from the Silicon Valley, and this could take away China’s companies’ dominance in markets such as smartphones, fintech services among others.