India is emerging as one of the top countries in the globe. India is a vital component of maintaining peace and security in the region as one of the three main Asian nations. In terms of GDP, India ranks seventh globally, and in terms of purchasing power parity, it is the third largest economy, although still being a low- to middle-income economy. India’s workforce will be the largest in the world by 2030.
After winning an unexpected landslide victory in 2014, Prime Minister Modi has made it clear that he intends to turn India’s global prominence into the swift economic expansion and job creation ,he assured that the Indian populace would be possible. Modi is still widely favoured and has no national opposition, despite the fact that progress toward achieving those lofty objectives has been slower than many had anticipated. Modi is in quite a good position to gain reelection in 2019 after his Bhartiya Janata Party (BJP) won resounding election victory in March 2017 in Uttar Pradesh, India’s largest state, and in April in the Municipal Corporation of Delhi. He has taken action to show that India is determined to have a greater influence in Asia and the world.
Donald Trump and the Republican Party have taken control of the US Senate and White House after winning the 2024 US Presidential Election handily. They may also be able to take control of the House of Representatives. This “clean sweep” of Republicans indicates that Trump’s policy program will probably move forward more quickly. Trump’s victory may have a big impact on India in a number of areas, from immigration and energy policy to business taxation and trade tariffs as follows:
- Reduced Corporate Taxes and Increased Investment in US Manufacturing
Trump’s pledge to lower corporate tax rates in the US, especially for domestic manufacturers, is one of the pillars of his platform. By lowering corporation tax rates from 21% to 15%, Trump’s proposed tax cut might encourage foreign investment and employment growth. This implies the following for India:
Positive Effect on US Businesses: The rise in US corporate investments and capital expenditure (capex) could be advantageous for Indian businesses that have a substantial US presence, particularly in manufacturing and IT services. For Indian companies that provide supply chain solutions or manufacturing services, this can open up new prospects.
- IT in India
Trump attempted to restrict the H-1B visa program during his prior administration as greater H-1B/L-1 visa processing fees, greater H-1B rejection rates and wage inflation for H-1B resources were all consequences of his policy. However, since all of the companies have increased their local hiring in the US, Indian IT services providers are now more protected against such anti-immigration laws. According to Venkatesh Balasubramaniam of JM Financial Research, majority of their US personnel are no longer reliant on visas (local or green card holders).
- Harmful Effect on Indian NBFCs and Banks
Lower taxes might benefit US companies, but Trump’s fiscal policies may result in higher interest rates in the US, which would limit India’s borrowing options, especially for banks and NBFCs (Non-Banking Financial Companies). India’s borrowing rates may remain high, which would be problematic for financial institutions that depend on lower rates for expansion, as the US Federal Reserve is probably going to keep or raise rates to counteract inflationary pressures from Trump’s expansionary plans.
- Pharma: Regional Innovation and Manufacturing Initiatives
The Trump administration has been adamant about relocating industrial jobs to the United States, even in industries like pharmaceuticals. His goal is to lessen dependency on foreign nations, particularly China, for the production of pharmaceuticals and medical equipment. Some pharmaceutical production may be restored to the US as a result of the drive for local manufacture. Reduction of reliance on China: Trump has specifically called for lessening the US’s reliance on China for medical supplies and drugs. This drive to diversify the supply chain could be advantageous for India, a significant provider of active pharmaceutical ingredients (APIs) and generic medications.
- Textile: Improved Retail Sentiment and the US Economy
Trump’s pro-business policies, such as his tax cuts and deregulation initiatives, may strengthen the US economy and boost consumer confidence in retail. The demand for imported items, especially clothing, may increase as a result. India, a significant supplier of clothing and textiles to the US, may experience an increase in demand for its goods.
- Impact of Delayed Rate Cuts in India on Real Estate
The Reserve Bank of India’s (RBI) protracted that interest rate reductions may have an effect on the country’s real estate sector. Borrowing costs in India may remain high if the US boosts interest rates as a result of Trump’s plans and India does the same to stop capital flight. Because borrowing rates play a big role in what consumers decide to buy, this could lower demand in the affordable housing market. Short-term demand for Indian real estate may decline, particularly for lower-end, interest-rate-sensitive dwellings.
Since the turn of the century, the relationship between the United States and India has changed. The two nations have grown closer on all fronts, but particularly in the area of security. India is now viewed as a vital partner in preserving the balance of power in an Asia that is not controlled by a single country, when previously it was mainly important to the United States as a counterweight to China or, subsequently, as a problematic leader of the Non-Aligned Movement. Understanding and adhering to India’s long-standing foreign policy priorities has allowed for the evolution of U.S.-Indian relations. The current priorities of the United States and India are very similar: combating terrorism, addressing China’s assertive actions in the area, and pursuing peace and stability in South and East Asia. The remarkable transformation of U.S.-Indian relations from one of mistrust and distance to one of growing partnership has been based on the convergence of interests. It’s still being worked on.
Many of the major foreign policy goals of the Donald Trump administration can be furthered through the strategic alliance between the United States and India. In addition to parallel “America First” and “India First” economic strategies, the convergence of U.S. and Indian security goals and policies may be advantageous for both countries. Given their strong nationalist and pro-business stances, President Trump and Prime Minister Narendra Modi are probably going to find points of agreement. Both leaders take great satisfaction in striking agreements, even when those agreements do not fully reflect the interests of their respective sides. Official confidence in India over relations with the United States under the Trump administration and strong bipartisan support in Congress for U.S.-India ties both encourage taking decisive action
The advantages of deeper collaboration with India can be realised by the Trump administration. First, work with Prime Minister Modi to establish a shared strategic perspective on the relationship between the United States and India, particularly with regard to joint interests in China, Pakistan, and Afghanistan. Secondly, clearly prioritise India diplomatically and strategically. Third, show that America supports India’s growing influence in Asia. Fourth, create new opportunities for defence and security cooperation between the United States and India. Fifth, search for ways to strengthen friendships while managing economic relations favourably, particularly with regard to trade and immigration issues.
Engagements in fields ranging from agriculture, health, and space to security and counterterrorism characterise the bilateral ties between the US and India. The stability of its “form and function” serves as the foundation for the India-US Comprehensive Global Strategic Partnership, which also encompasses collaboration at multilateral and regional levels.One Of The importance of “form” cannot be overstated, even while this stability is largely driven by its “function”—fastly convergent interests in the Indo-Pacific area, bolstering defence ties, and expanding trade and investment ties. As a result, there is now more focus on institutional frameworks that protect the partnership’s operations from transient or unresolved differences.
The emergence of populism in the modern world has altered how states communicate with one another. Populism is a worldview that priorities equitable distribution of money, power, and resources while focusing on the needs of the average person. In general, populism centres on the difficulties facing the average person and places greater emphasis on domestic needs and interests than on global ones. Additionally, populism and nationalism share some characteristics, as both emphasise the importance of national interests over those of the global community. Both theories establish novel patterns in state-to-state interactions. (Cox, 2018)
The phenomenon of populism is not new; in fact, there are numerous instances of populist politicians, parties, and movements throughout history.Latin American nations like Brazil and Argentina are prime instances of the politics of the middle of the 20th century in the early 21st century. Additionally, the most recent instances of populist politics’ explosive rise in the global system during the early 21st century are the ascent of Donald Trump in the United States and Narendra Modi in India. The way these two leaders completely changed the political systems of their respective nations demonstrates that populism is rapidly expanding and that the general public is more devoted to these leaders than liberal Democrats.
Although Trump and Indian Prime Minister Narendra Modi had a cordial relationship during his first term, the global environment now seems more complicated than it was. It’s unknown how the two presidents will address matters like immigration, bilateral commerce, China’s expanding power in Asia, and Russia’s war in Ukraine. However, given Trump’s unpredictable leadership style, diplomats and foreign policy experts have expressed both hope and caution, emphasising that connections between the two nations should not be taken for granted.
Written By Samiya Qureshi
Edited By Rimzim Purohit
