US-India trade deals are under major focus as US President Obama is revealing plans to boost both American and Indian economies. Obama has recently announced a trade deal worth $10 billion that would help support the economic growth and create around 50,000 jobs in both the US and India. The deal sounds promising but Obama has asked India to reduce the trade barriers so the US exports get another market to capture that is extremely apt as far as growth prospects are concerned.
However, Indian business leaders believe that Indian multinationals have already made heavy investments in the US markets and that would potentially help the US market to rebound, creating more domestic jobs for the Americans. For instance, a multinational like Tata is already involved in the outsourcing business and has made huge investments in the USA’s automobile industry. This clearly underlines the fact that Indian business giants have been proactive in developing jobs in the American region.
On the other hand, Indian business sector is not very comfortable with Obama’s unfriendly attitude toward outsourcing. Hence, the business models for both the economies are polls apart and Obama’s attempt to create a win-win situation for both the economies doesn’t seem very convincing.
However, since the world’s largest economies are looking forward to create a better and progressive future, we also need to see the positive side of the entire scenario.
Minneapolis-based Indian Chamber of Commerce (ICC) offers some useful insights on the same.
Seann Nelipinath, President and Director of ICC said, "The American business model encourages companies move towards the most productive and efficient outcomes - hence the outsourcing towards India",
"This results in the immediate loss of jobs to local Americans and the ability of Americans to sustain the local economy and also to buy foreign goods and services,” added Nelipinath.
Dr Bruce Corrie, economist and a Director of the ICC mentions, "There is an increasing realization in the US that India presents huge economic opportunities for US products and services".
Thus, we need to just ‘wait and watch’ the outcome of this entire deal and then probably come to a constructive conclusion that would actually help us understand the political agendas better.
