US Governments used to treat India with disdain in the past. Very few took the trouble to visit our country. We were a small player in the global arena, a developing country that was pro Russia, and hardly worth a second look for one of the then two super powers of the World.
But times have changed. The Super power is in serious trouble. Dollar is on a slide, retaining a bit of credibility only because of the troubles faced by Euro and Yen. The US financial sector is in disarray. Unemployment is near to 17%, which is inclusive of those who have not registered, while the figures for those on the list is slightly less than 10% - an alarming situation whichever way you look at it. The Government's revival package for the industry are clearly not working. The industry is hiring less and less, adding thousands to the jobless list every week. The manufacturing sector has lost out to the Chinese, the services sector to the Indians. The US was respected at least for its military might. But Iraq and Afghanistan have severely dented that aura. They remain a paper tiger at best. In short, US has lost the moral authority. Dollar is under attack and has lost nearly 14% of late, and is facing the ignomy of being propped up by the Chinese, Japanese and the other Asian countries who buy US treasury bills in droves to support the dollar. The US has resorted to cheap protectionism slogans to rally the industry around, something they accused the third world countries of, not long ago. The worst part is that their economy is in serious recession and shows no sign of recovering. Their fiscal deficit for 2009 was $ 1.4 billion, almost 9.9% of their GDP, something that should send warning signals across the globe. And these are just official figures, the unofficial figures claim the deficit to be close to 16%.
With joblessness on the rise, manufacturing down, and economy in recession the only major advantage US had all these years - being the largest consumers in the World - is under serious threat. The Asians, natural savers, are trying desperately to encourage their people to spend. China is leading the way, with internal consumption on the rise, followed by India. The economic power has already shifted away from the West to Asia.
India is rising, despite its problems. The economy is growing at nearly 9%, something US cannot even dream for another couple of decades, if not forever. The manufacturing and services sector are doing extremely well. And we are being given grudging respect by the World. Money and prosperity talks, and only they talk in this World, but one must know how to leverage them, which we, as a nation, dont.
It is under such a foreboding scenario that Barrack Obama is visiting India, a non-event. And added to his woes, he will be visiting India at a time when his political standing in US is at its lowest ebb. The Democrats are expected to lose badly in the mid term elections, if the polls are any indications. And US has nothing to offer. The Nuclear Deal, on which Manmohan Singh spent all his political goodwill, has proved to be a non starter. Obama is in fact here with a begging bowl, seeking opportunities for US companies to make money. This is the time to turn the screw on US and get major concessions. But our Government lacks the political will and the leadership to show US their place. So much the tragedy
What we should do is to tell Obama to reign in his pet dog Pakistan on Kashmir or else US Companies will not get any concessions. Tell him to not talk rubbish about banning outsourcing and gently remind him the exhortions made by US over the years about a single global economy. Put pressure on him to reduce subsidy given to his agriculture sector and open up the sector for imports from India. We should tell him in no uncertain terms that Nuclear Liability bill is here to stay, and the US companies understand their responsibilities and accept the bills provision if they want to do business in India. If not, we will find other suppliers. Tell him that we are least bothered about his curbs on H1B visas. Anyway, who wants to migrate to jobless US in these times?. And finally, put Obama in his place by telling him clearly that for once the shoe is on the other foot, the hunter has become the hunted or the alms giver has become the alms taker.
