US Offers India an Opportunity to Replace China

“Prospects and potentials for India are unlimited. It is up to Prime Minister Modi how he takes advantage of the opportunity”, says the author.

The Sino-USA economic and trade war has reached its climax for the worst. President Trump has ordered all American corporations doing business in China to quit and relocate to an alternate country.    While I am writing this, the news has come in that Apple is pulling out of China.

The tug of war has been going on between the USA and China on trade and China’s currency devaluation.  It appears that Trump-Xi summitry is not working.   Trump has almost declared a cold war with China when he asked publicly that American corporations in China must quit and find an alternative location.

INDIA MUST SEIZE THE OPPORTUNITY

India is the only alternative and it must seize the opportunity.

India has the human resources required.  Half of India’s population is under 25, two-thirds under 35.  India has an oversupply of labor, engineers and other professionals.

India is the largest English-speaking country in the world, making it easier for Americans to operate in India.  IBM is the second largest private employer in India after Tatas, employing 150,000. IBM has more employees in India than in any other location including its headquarters in New York.

India has a comparative advantage over China.

President Trump has branded India as CLOSEST ALLY OF THE USA on a par with the U.K.   He has allowed India to transfer 100% of U.S. technologies without restriction.  China never enjoyed this advantage and they were caught stealing.

To cite an example, President Trump has authorized Lockheed Martin to manufacture F-16, 18 planes in India.  He has also encouraged Boeing, United Technologies, Raytheon to set up manufacturing in India.  India has a huge comparative advantage over the USA in manufacturing most expensive and sophisticated military hardware.

When the U.S. went to China in 1980, China had  nothing. Its economy was far behind that of India’s.  Dung Sha Ping was a practical ruler.  He decided to move closer to the USA.  President Reagan offered help and full cooperation if China opened its economy and created necessary environment for investment and business.

There is no reason why India cannot liberalize and open the Indian economy to the USA.  Such a bold move will create millions of new jobs year after year for the next twenty years.  India’s GDP,  now less than 7% , could grow @10 to 12% if both countries cooperate in modernizing India.

“Prime Minister Modi must schedule a State visit for President Trump as soon as possible, preferably this year.  I am sure Trump will take with him a delegation of 100 Fortune 500 corporations. Finally, India will be able to build the required infrastructure it has been talking about for 25 years.  Modi will create an economic revolution that will create 20 million new jobs every year for the next 20 years.” 

GOLDEN OPPORTUNITY FOR INDIA – PRIME MINISTER MODI MUT CAPITALIZE NOW

Prime Minister Modi must schedule a State visit for President Trump as soon as possible, preferably this year.  I am sure Trump will take with him a delegation of 100 Fortune 500 corporations. Finally, India will be able to build the required infrastructure it has been talking about for 25 years.  Modi will create an economic revolution that will create 20 million new jobs every year for the next 20 years.  Prospects and potentials for India are unlimited. It is up to Prime Minister Modi how he takes advantage of the opportunity.

(The author is a senior advisor to Imagindia Institute, New Delhi . He can be reached at vpwaren@gmail.com)