We have to agree that the Prime Minister of India, Narendra Modi is a heroic personality and have a huge fan following across the country. But, it is a matter of proud for us that he is not only loved and followed by his country people, but across the globe as well. Yes, you guessed it right, we are here talking about Howdy Modi. What an event it was…thousands of people..Indian as well as American gathering in Houston, Texas, United States, just to listen, see Indian Prime Minister. The cheering crowd made a mesmerising view and a proud moment for every Indian.
Though, the event was not at all a novel one in itself, as such mega-events have been organized earlier with success. The reason being Prime Minister Narendra Modi relates to the Indian diaspora exceptionally well because of his oratory, the sense of strong leadership that he conveys, and the assurance he radiates that the country is marching ahead. But this time it was a bit different because he has gone to the US after a massive electoral victory. We are proud that now he is been recognised as a global leader with an unmatched democratic legitimacy.
US President Donald Trump’s decision to join Modi at Houston was an unpredictable gesture, even if we overlook the electoral calculation for it. Meanwhile, it amounts to a recognition of the political and economic clout of the Indian American community. It is noteworthy that the more the American political class recognizes this, the more of a strengthening effect it has on India-US relations. The presence of a large number of US Congressmen at the event points to this.
To negotiate a limited trade deal that US President Donald Trump and Indian Prime Minister Narendra Modi can sign at the United Nations General Assembly in New York at the end of September, both the countries are working on it.
The deal would be a welcome victory for President Trump, as a deal between the world’s most populous democracies will be beneficial. Also, the Trump administration has made little headway negotiating an end to its prolonged trade war with China. The US is also expected to sign a deal with Japanese Prime Minister Shinzo Abe next week that lowers Japanese farm tariffs.
The deal under discussion with India would lower some tariffs on US produce and restore preferential treatment for some Indian exports to the United States.
Not So Smooth?
US-India trade relations were not always as smooth as it seems current. Trump has repeatedly complained about India’s high tariff rates, including a 50 per cent tariff on Harley-Davidson motorcycles. The US has also raised an issue with India’s new investment rules on e-commerce as well. It is that limit how companies like Amazon.com Inc and Walmart-backed Flipkart can do business in a rapidly growing online market set to touch $200 billion by 2027. Unlike Trump, PM Modi has used tariffs to try to boost investment in manufacturing, a key part of his ‘Make-In-India’ campaign to attract foreign cash and create factory jobs for millions of youth entering the workforce. Apple supplier Foxconn recently expanded production of iPhones in India to avoid a 20 per cent import tariff and diversify its supply chain from China. Bilateral US trade with India, at $142 billion (£113.80 billion) last year, is just a fraction of the $737 billion in US-China trade.
Out and About of the Tariffs:
The Trump administration in June has ended duty-free access for about $5.7 billion worth of Indian exports under its Generalized System of Preferences (GSP) program. This includes chemicals, plastics, leather and rubber goods, and auto parts. To this India responded with higher retaliatory tariffs on 28 US products, including almonds, apples and walnuts.
The talks were majorly focused on the demands of the US that India should reduce agricultural tariffs for almonds, pork, dairy products, cherries, apples and other commodities. However, the sources say that India is likely to allow some US dairy imports, as the United States was pushing India to remove high pricing barriers on imported US medical devices including cardiac stents.
As Modi struggles to boost exports dampened by sluggish global demand made worse by the US-China trade war, India wants the GSP restored for a few more years. The United States is also seeking lower tariffs on high-end electronics products.
In a nutshell, both sides are discussing revising India’s domestic content rules on ethanol to allow more imports of the US fuel additive. And we hope for a positive come out.
