Changes by Trump and impact on India
The changes brought in by Mr. Donald Trump are likely to impact India in a very major way. Lots of scientists and engineers who would go on visas to the USA and send back remittances to India are unlikely to do so now. More Indians are likely to come home or stay in India looking for domestic jobs. Coupled with high tariffs that make our exports uncompetitive, Mr. Trump is trying to hurt the Indian economy in a major way. In addition, he is giving hints that the USA is likely to shift strategically to Pakistan. However, Mr. Trump is underestimating Mr. Narendra Modi. Mr. Modi is a very astute politician. He has already started redefining India's strategic alliances. He is looking for alternative markets. The GST cuts are likely to give domestic consumption a boost. Now, there is a need for improving employment and growth. One way is to resurrect the public sector. However, management control will have to be flexible and not subordinated to Ministries. Another way is to improve medical tourism. Let India become a hub for medical tourism. Hospital care is good and affordable in India. Set up hospitals catering to foreign nationals in SEZs. Land can be provided cheaply to these hospitals without EWS beds. Let these hospitals pay income tax on their profits at a higher rate and let there be no exemption from Income Tax to them. Government can also allow those who were working on visas in the USA to rent infrastructure in SEZs. They can run their own companies that can be given single window clearances for their companies in 24 hours. Extra infrastructure can be constructed in SEZs for both offices/ factories and residential units for such eligible persons. What Mr. Trump is trying to do to India may just backfire and boost India's way to becoming a developed economy by 2047.
Vijay Kumar
Vijay Kumar