Friday, November 18, 2016

DONALD TRUMP ERA & ITS IMPACT ON INDIAN TRADE

Donald Trump as businessman , thinks of India , as a potential market -- a place where he can locate his new projects or pursue a similar business opportunity.  As businessman ,he does not care for any social factors of the country , while doing business in other countries. He only cares for success of his projects and profit there off. Initially he may  not be negative to India but , but he thinks for American interest first. He wants America to be gainer in the last ,in this trade game.

During his election campaign period , he has not touched India as such , as far as Trade is concerned. But he was critical to H -1B. Indian outsourcing giants Tata Consultancy Services, Infosys and Wipro are heavy users of the H-1B visas. The IT industry has genuine concerns .India's software service accounted for $ 82 billion approx as on March 2015.As per indications available now onward these Indian companies will not be able to hire Indian software personnel's for jobs in United States of America .For jobs in US they will have to hire IT personnel's from US only . In other words for US jobs only US personnel's.


If it is so , not only Indian job market but India's revenue earnings in foreign exchange are going to be affected very badly .A lot of fresh IIT graduates  in IT field , are going to be badly affected as neither these Indian companies can offer them those jobs here in  India nor can offer  that lucrative pay packages . The dreams of young Indians is definitely going to be shattered .In view of this India should take up suitably with US to find out a win win solution. India is already struggling for creation of more jobs within the country , as unemployment has increased to many fold since last two years. 

Trump openly said these visas are affecting American workers badly . As per initial indications Trump cocktail like policy  may slowed down investment abroad , may curb immigration in IT sectors workers especially .Protecting American jobs,  is his main concern .

Donald Trump has frequently targeted India through his rhetoric, and accused India and China of taking unfair “advantage of the United States”  in his widely televised debates . He even said I would tax China or its products coming in.Indian business leaders are really concerned that  Trump presidency could negatively impact the country.

Trump’s anti-outsourcing talk comes at a time when the Indian IT industry is already feeling punch for US protectionism.Trump may or may not be a threat to Indian market , as he too well knows that India is a very big , strong and important growing market ,and he may not be able to play at its will. He needs India badly to counter balance China .



Nobody knows how much of his campaign rhetoric shall be formulated in to state policy. However, protecting American jobs is his main concern.On the other hand big American companies like WalMart ,Face book ,Apple , Ford want to increase their share in India.All mixed signals. However countries like India , China , south Korea , Japan needs to be careful.

Picture is yet not clear. We have to be in " Wait & Watch mode", as they have not envisaged any clear  trade policy towards India. It may be under formulation.

We are optimistic !

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