5 Reasons Why Trump Administration is Good for India

Let us call a spade a spade! A large share of the world population dislikes Trump. Not to mention, his social media posts haven’t helped his case either. Some would say he is aggressive, volatile, childish, etc. But as an Indian, I cannot help but notice he is not all bad! Especially for a booming economy like India, the Trump administration can yield a variety of benefits. Here are the top five reasons why I think Trump’s second term in office might be the best thing that has happened to India in a long time:

1. The Trump Effect – India-US Trade Dynamic

I agree that the trade and economic opportunities existing between India and the US aren't exactly easy to understand. The news is all about how Trump is imposing tariffs on Indian goods left, right, and center. These tariffs are already negatively impacting India's exports. Donald Trump calling India a "very big [trade] abuser" and planning to impose higher tariffs on Indian exports could hinder up to $75 billion worth of Indian exports to the United States.

Having said that, some analysts have put forth the argument that bilateral trade agreements could actually benefit India. Trade expert Biswajit Dhar, Professor of Economics at Jawaharlal Nehru University (JNU) says "The Trump administration's trade policies could lead to increased trade tensions, but they also present an opportunity for India to renegotiate its trade agreements and secure better terms." We have built a massive trade surplus with the US, meaning a drastic US trade policy could pave the way for more opportunities for India.

While on the topic, we cannot forget how the new administration has brought on numerous policies for highly skilled workers, benefiting Indian immigrants. Before we begin counting our chickens before they hatch, let's not forget that the impact of these policies on Indian immigrants is still questionable.

Last but not least, Trump might be our last trump card in counter-balancing China. The new POTUS has taken a rather strict stance on China. This might be our chance finally to counterbalance China's growing influence in the US create opportunities for our homeland and fortify ties with other countries.

Also, The US and India have been besties when it comes to the energy sector. The new administration seems to offer continued support and cooperation in nuclear and renewable energy initiatives.

2.      Trump's Hands-Off Policy: India's moment to lead

Here's why I think Trump's "America First" policy could be a great initiative toward resolving regional conflicts. It finally offers India a more important role in maintaining security in South Asia. Their hands-off approach will finally allow us to assert influence, strengthen relationships with our neighbors, focus on regional security, and ensure economic cooperation.

It might even be right to say that, thank God, the US has finally taken a step back! Isn't this the key leadership role that we have always wanted to take? It's India's chance to ensure stability and pave the way for prosperity in the region. Trump putting America's welfare first can offer some amazing benefits to India, such as:

- Finally, a chance to promote India's interests and values.

- Partnering with neighboring countries to resolve issues like terrorism and maritime security.

- This might be the moment we've all been waiting for, when India, Pakistan, Laos, Philippines, Cambodia, and many other countries can focus on promoting trade and investments.

However, there is a sting in the tail. The US-China rivalry between these two nations could negatively impact India's relationships with both of them. If our leaders don't handle the situation diplomatically, boy, won't we be in a pickle!

3. A New Era of Opportunities for Indian Immigrants

One of the many policies introduced by the new administration in America is that it is still open to bringing in highly skilled workers. Indian immigrants cannot be happier with this new policy. This merit-based immigration policy prioritizes skilled workers. This means every Indian with an advanced degree or expertise, or both, in the fields of technology, medicine, and business could benefit commendably.

For starters, Indian immigrants will find numerous opportunities in the fields of tech and healthcare. Not to mention, Trump's administration is currently working towards creating a more defined and hassle-free process for skilled workers to obtain Green Cards. This is good news for Indian immigrants looking forward to settling in the US. More importantly, India has a concrete trade relationship with the US, which means we can expect an increase in demand for Indian talent.

While all that is good news. On the downside, Trump has introduced stricter regulations for H-1B visas and increased scrutiny of visa applications. Indians must also roll up their sleeves to tackle delays and rejections in visa applications.

4.      US-China Relations

The fact that the new Trump administration has taken a tough stance on China is no secret. However, this is great news for India. Trump's aggressive approach towards China will counterbalance China's growing influence and create more opportunities for India.

As we discussed earlier, it presents another opportunity to strengthen India's ties with other countries. Let's talk money, shall we? The US has imposed preposterous tariffs on Chinese goods. Indian exporters will use this opportunity to fill the void. It is expected that exporters dealing in textiles, pharmaceuticals, and chemicals will benefit the most.

Moreover, Trump's rivalry with China could lead to increased cooperation between India and America on matters including defense, security, and technology. With these two superpowers competing for dominance, India is in a better position to gain leverage in regional forums like ASEAN and SCO.

The dark side to this is the probability of increased tensions and instability. Let's just hope this new rivalry does not impact India's relationships with China. Furthermore, trade tensions and tariffs will have an effect on global supply chains, which will impact businesses and exporters worldwide, including Indians.

5.      Powerplay: US-India

Dr. Amit Bhandari, Fellow, Energy and Environment Studies Programme, Gateway House says "The US-India energy cooperation has the potential to transform India's energy landscape, but it requires careful planning and execution to ensure that it benefits both countries."

As we discussed earlier, the US and India have been actively exploring new opportunities in the energy sector. The primary focus areas for both countries are nuclear and renewable energy. Trump's administration may support these initiatives, benefiting both nations in the long term.

The US and India have a long-standing cooperation in nuclear energy, which will help meet India's growing energy demands. India has also been collaborating with the US to develop, promote, and deploy renewable energy technologies. The new administration may continue to support India's solar and wind power projects.

America's increased investment in renewable energy projects in India will not only help the two nations reduce their reliance on natural and non-renewable energy sources but also contribute to global efforts to mitigate climate change. Trump may also support India's initiatives in developing and promoting energy-efficient technologies and practices.

The US is a significant supplier of liquefied natural gas (LNG) to India. With numerous LNG export projects underway, Trump's continued cooperation in this matter can translate into more LNG imports to India. It's high time for India to diversify its reliance on oil and coal.

Although Trump's stance on climate change is unclear, his administration's policies may indirectly benefit India's energy sector. This presents an opportunity for India to promote sustainable development and combat global warming.

The Takeaway

Donald Trump and his controversial policies and statements may not be all that bad. His presidency has and can present some opportunities for India. From the bilateral trade agreements to the increase in demand for highly skilled Indian professionals, The new POTUS may have created a conducive situation for India's development.

There is no doubt that the impact of his policies will cause some global trade and economic instability. However, I believe India has all the resources and the right strategies in place to use Trump's policies as a catalyst for India's continued growth.

Let's hope that the Indian administration turns these challenges into opportunities and emerges stronger. As an Indian, I look forward to seeing India make its mark globally.

References:

[1] Dhar, B. (2020). India-US Trade Relations: Challenges and Opportunities. Economic and Political Weekly, 55(15), 10-13.

[2] Bhandari, A. (2020). US-India Energy Cooperation: A New Era. Gateway House, 1-4.