Will Trump's strategies hurt Indian economy?

The new President is trying to revamp production on the US soil. This , he is trying by providing tax sops and other incentives in marketing. Have such incentives given in India , it would have become an industrial giant.

But studies of many financial agencies suggest that growth in factory jobs in US would continue to be skewed. The US is a centre for fast changing developments in Research and Development sector. Inspite of this fact , it has not been able to provide jobs to its people.

The technical know-how developments in US have always been an eye-opener for the world. It has consistently expanded its knowledge base and intellectual property assets. But to transform these assets and knowledge into earning for the country , the production houses need to be established in the US itself.

But chances of success of Trump in this aspect are bleak. US is a capitalist country where private corporates have significant autonomy in taking their business decisions. The conditions in US are not conducive for industrial growth.

The population of US is ageing. The median age of US population is 37.8 years and it is increasing at a fast rate. The restrictions in immigration are also aggravating the problem of ageing. Thus , even if factories are set up , working population is not competitive as against India whose median age is 27.6 years. 

The workforce in US is expensive unlike India where cheap and abundant labour is easily available. This is also supplemented by improving state of health , education and skill in India.

The growing middle class presents an advantageous picture in favour of India against US. The market potential in emerging markets like India is already very high. So , to reduce the cost of transportation from factory to markets , production houses are migrating to India and China.

The latest developments like US backing out from TPP deal and exchange of words between Trump and China provide a great opportunity for India to encash. The only need for India is to keep its house in order. Problems of land acquisition , environmental clearances , bureaucratic red tapism and labour laws are the issues India need to cope up.

A positive change in the field of economy would transform whole society and polity of India.