FuturePAF
THINK TANK: CONSULTANT
India exports other things to the US. For example, pharmaceuticals. Trump has been mulling over tariffs on pharmaceuticals, and India is large producer of generics, so tariffs on those would be easier to implement, than manufacturers of brand medications only made by one company. There are plenty of us pharmaceutical companies, such as Mylan in West Virginia, rich could start lobbying Trump again to restrict imports and give American manufacturers more opportunities.@FuturePAF
Furthermore, the blowback for Modi, and his foreign policy, for many at the top of Indian industries, would force politically unpalatable concessions.
The main leverage that US has over IND is that we get a huge amount of remittance and IT exports revenues from US. If that disappears what leverage is US left with? Even if we make unpalatable concessions, how will IND pay for American imports?
Regards
We have to look at what the US expected from China, when the US opened its markets to China in 2001 as part of China joining the WTO, but also before that; increased agricultural imports but also imports of things like cars and other higher priced machinery.
The US wants India to buy more American products (and less European or East Asian) even if a bit more expensive and a bit less capable or interoperable with everything else India has. This is probably the minimum expectation. The US will probably pressure India, with restrictions on defense exports India has already bought, such as the GE F404/414 engines, to be a better “defense partner” in containing China. The US could also pressure India to buy the F-35.
So these are the kinds of services the US would be happy for India to provide the US, especially to balance out the trade.
Barkha Dutt is calling the H1B fee an H-Bomb.
P.s. wait till Americans complain to Trump about the poor (less than standard done by Americans) service at hotels and motels run by Indians who got to own these establishments through visa programs. That will be another industry that Trump can get back for American investors and workers.
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