Tuesday, June 16, 2020

What did India gained spending around 150 Crores on Trump visit, while he praised Pakistan from our stage and walked away with $3 Billion defense deal

Word of caution, readers might get upset to read about the harsh realities. Going ahead is reader’s discretion.

We need to understand that President Trump's India visit is not a pleasure trip. Particularly when the election is forthcoming, he has to be extra careful in each of his move. His India visit has to be well justified. American people don't approve their President taking pleasure trip to enjoy Modi' hospitality. Neither President Trump is a fool to waste his time and tax payers money in such futile exercise. He hold US interest as supreme, no compromise on that. So his agenda was very clear.He has accepted Modi’s invitation, but he can not go back empty hand.

We need to understand here that Modi trying to be over friendly with Trump, it could be his personal interest and to some extent could be India’s requirement as well. It could be jolly well understood from the exaggeration and the overdoing things during Trump’s visit.

But the same is not true neither for Trump not for America. They are very steady on their diplomatic stand. US never gone overboard while receiving Indian Prime Minister in US. US administration didn’t spent a single penny for Howdy Modi event in Houston. But here the entire expenditure for the two day extravaganza is done with the tax payers money. US citizen of Indian origin cheering for Trump make sense, because he is the President of their country, they are well connected. But here in India people cheering from Trump is not the same. Could some one tell me how they are connected, has there been any specific gain to cheer so much ? If not then all this cheering is stage managed. I believe US President is intelligent enough to understand the same.

US has removed India from the list of developing nations just before Trump’s visit. Trump praised Pakistan from Indian soil. Trump is visiting India towards the end of presidency term, so India or Modi doesn't come in his priority list. Could someone explain the benefit to US in becoming over friendly to India or Modi ? US is superpower, US is having a huge trade deficit with India, India doesn’t play a strategic role for US, like Pakistan plays. Neither US need any help from India in any international matters. Its India who constantly keep on asking US help to counter Pakistan, its the Indians who are bee-lining for US H1B1 visa or green card. In 2019 US-India had total bilateral trade volume of $92.08 billion. US Export to India totaled $34.41 billion and Import from India totaled $57.67 billion, a deficit of $23.26 billion

I wouldn’t say that US doesn’t have any interest in India. US is certainly having interest in Indian market. Infact the Export-Import or the bilateral trade volume doesn’t give the clear picture of US interest in India. In pen & paper US will always show the trade deficit, but they will never talk about the business, which the US origine companies are doing in India. A large share of Indian market has been captured by the US companies. US knows that unlike China in direct exporting to India they would never be cost effective, so they have opted the other way of capturing Indian market sitting in India. And US take this for granted. US would never talk about this, but they would always speak about duties on Harley. Further US is putting pressure for market access or opening up market in more sector. I am quoting the following excerpt from an article given in the reference.

American Companies Journey

The American companies in India started their dream run during 1990 when they reaped huge profits. The companies have seen double digit year-on-year growth in various sectors like Technology, Colas, Agriculture, Automobiles, Equipment, Finance and Banking. According to the American Chamber of Commerce in India, their membership base has soared up from zero in 1992 to more than 300 till date. However, the major success in terms of investment and growth came in technology sector. Many of the top IT companies in India are American. In fact, out of the top 20 IT companies operating in India, many are from the U.S., such as Cognizant, Microsoft, Google, Dell, SAP, Oracle, Cisco, Microsoft, HP and Intel.

However, the growth of the American companies in India is not limited to IT or manufacturing only. Many American companies have significant operations in India. The list includes names such as Amazon, Apple, Citibank, Coca Cola, and Ford. The American retail giant Walmart has also acquired 77% stake in the foremost Indian eCommerce company Flipkart, to become a key player in the Indian consumption sector.

List of American Companies in India

There are a number of American companies in India which have been doing their business successfully over the years. Some of the popular American company names in India are given below:Agilent

India spent huge amount on Trump’s hospitality. But Pakistan managed to get praised without spending a penny. And finally Trump flew away with his visiting charge of USD 3 Billing defense deal. Would Indian government explain what benefit India derived with this extra large, extra pompous event in a major shift and departure from the standard diplomatic protocol ? It will set a very dangerous precedence. The standard protocol of Red Carper welcome is a long standing practice without involving any major expenditure. In future if the heads of other important countries are not extended similar welcome, they will find it discriminatory and surely be offended. Further for next US Presidential visit also we have to organize similar welcome. Somehow I feel this extra large & pompous welcome looks very flattery and a compromise on our dignity without any justification.

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