Nilgiri
INT'L MOD
With Trump’s inaugural speech about bringing back manufacturing to the US and imposing tariffs, do Indian industries have a plan to increase exports to the US, especially manufactured goods, in the face of these head winds?
No real plan. Everything has been reactionary and muddled for a long while now. India is awfully statist where it should not be....and insufficiently statist where it should be. It would need a breakdown of Indian fiscal internals to then understand the external intersection with rest of world (to attract broadscale capital relative to India's current labour supply), some of which I mention here:
The bigger issue at hand is that they can and are exporting MASSIVE amount of commodities and specialised goods. To the point they are undercutting even after any tariff. And they due to surpassed domestic demand, they can pump out even more. Not to mention their carefully managed currency, which should be 10x higher if it were free floating, makes it impossible to replace them on cost alone.
The even bigger point is that now India's trade deficit vis a vis China is so massive that it is a strategic vulnerability. If China turns off the tap of cheap imports, a lot of Indian businesses...
The basic larger issue is that one part of the country that is behind refuses to learn and properly implement from the other part of the country that is ahead. This in itself would have at least doubled Indian GDP by now (i.e what is the GDP per capita of TN versus Bihar etc and their respective underlying social and human development creating this).









