**Bhubaneswar ** Donald Trump, a noted American businessman, has emerged as the 45th president of the United States of America.
As during his election campaign Trump had his 15-point agenda, it has created a lot of apprehension among the masses.
OMMCOM NEWS delved into it in a bid to further analyse the consequences if Trump decides to implement his economic reforms.
Watch what the experts have to say here in Odisha:
“Donald Trump has praised Prime Minister Modi and India on different occasions during his election campaign. He has also expressed his keen interest in building a stronger bond with and trigger development in different sectors”, said Brahmananda Satpathy, HOD, Political Science, Utkal University.
Surya Mishra, Political Analyst said, “Both Republicans and Democratic governments have maintained cordial relationships with India. Donald Trump is elected as a time a when there are many various issues in the diplomacy front and India is the only country which it can count upon, hence American cannot leave India” .
He further explained, “There is a lot of apprehensions about the economic reforms which Donald Trump may adopt, however, the possibility of India undergoing losses to such policy is negligible”.
One of the highlights of Trump’s economic campaign is his plan to reduce corporate tax rates in the USA to 15%. If Trump were to implement this plan, US businesses in India could be lured back to American soil. Trump’s massive tax cut would more than offset the advantages of cheap labour that India provides. Similarly, other American businesses in India could be tempted to do the same.
Trump has showed his intentions to out curb Chinese imports which would hardly benefit India. That’s because Chinese manufacturing and existing trade with the USA is eons ahead of India. In comparison, India’s computer and telecom equipment exports to US was just above $2 billion. India’s biggest exports to the US are gems and diamonds followed by pharmaceuticals pegged at $66 billion. Given India’s strong pharma manufacturing, Trump’s promise to curtail China could open possibilities of diverting capture a part of the trade that China would lose, as per economic analysts.
Donald Trump intends to fulfill the American dream by reviving the American economy for which an enhanced role for private businesses in creating jobs to achieve Trump’s targets. That would mean enhanced opportunities for not just big businesses in India but also smaller ones to invest in the US. The EB-5 visa programme is likely to further gain traction in India if Trump were to follow through with his agenda of cutting federal spending while at the same time easing regulation for businesses, media reports say.
Trump has used strong words on the need to curtail ISIS and curb immigration from countries that export terror. This would comfort India, which has seen a surge in support for ISIS among its young population, as per reports.
Donald has also promised to open onshore and offshore leasing on federal lands and lift the moratorium on coal leasing. India, like many other nations in the world, is at the mercy of Organisation of Petroleum Exporting Countries (OPEC) when it comes paying a price for oil. A rise in the price of fuel bleeds India’s domestic oil companies, throws the government’s fiscal deficit targets in disarray and leads to a spike in the prices of essential goods, reports said.
Trump’s policy on curbing Down Immigration is bad news for top Indian IT companies that make their billions by using the H1B visa programme that allows low cost skilled Indians to work in the US, reports added.
Trump’s election plank is to protect jobs of US citizens. All signs indicate that Trump, if elected, would cut down on the flow of cash to Pakistan and China. A President Trump will be electorally committed to bringing a material number of lost manufacturing jobs back to the US; the only way he can do so will be to offset Asia’s (especially China’s) labour cost advantage in manufacturing with a combination of tariff and non-tariff barriers, as per the media analysis.