The Impact of “Trumped” U.S on India

Finally, the citizens of the U.S have chosen their leader and for the next 4 years. Donald Trump is going to hold the most powerful leadership post of the world.

File:Donald Trump by Gage Skidmore.jpg

Donald Trump

The question of our concern is : “How will it impact India? “. Broadly, there is an economic cum strategic impact on India. This is as follows:

Negative:

  • Scrapping the H1B Visa regime which allowed the employers in the U.S to employ foreigners. This is much leveraged upon by the Indians. The scrapping of such a regime may render the Indians jobless.
  • In line with his nationalist instinct, he also called for checking the excessive BPOs by the Indians which are affecting the jobs in the U.S as Indian Human Resources are cheap and skilled. This again has a considerable bearing on employment for the Indians.
  • India enjoys the luxury of having a trade surplus with the U.S , thanks to the pharma, services among others. A nationalist leadership may try to cut the trade to reduce imports. Obama care, a health insurance scheme can be under peril. This scheme doubled the pharma exports from India. This will be affected negatively.
  • Mr. Trump talked about reducing the corporation tax from 30 or so to 15% . This would affect the investments in other countries as now U.S would become the point of attraction for many. This will also affect India’s Make in India programme.

Positive:

  • Later on, he adopted a bit softer attitude towards India’s H1B needs. So, we may not be affected much.
  • His stern stance against Pakistan and Islamic terrorism could help in curbing terror financing rackets in Pakistan. This stance also adds to India’s persistent efforts against terrorism.
  • A crucial part of his campaign was India and Indian community. This shows that the U.S policy of INDIA as a “Pivot to Asia” and counter-balancing China’s rise would continue. This in turn could help India’s rise in Asia.
  • As he talked about expanding America’s shale gas exploration programme, the Indian enterprises like ONGC and OIL which are going global, may find some opportunities here.
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