One of the biggest issues in the last month regarding economics is the Brexit. UK Secretary of State for Business, Sajid Javid visited India right after the UK citizens “sentenced” UK to exit the EU. Likewise, while we spotlight China to be the next USA, superpowers are paying attention to India, the rising power of Asia.
There are several attractions of India, including their peculiarity in population. Most of the nations are turning to an aging society; India, on the other hand, is expected to maintain their balanced pyramid of an average age of 29 even after 2040, when they drag China down and become the most populous nation. Moreover, India’s workforces are cheap; they are paid only 5.18$ per day while China pays their laborers 22.64$ a day which is even dwindling. This leads to a shortage of professions, for instance, according to an ad, a textile company offers at least 10,000$ for an experienced worker. In fact, one of the largest portions of US’s export to India is their professions. Thanks to these merits, India had the highest GDP growth rate in the world of 7.3% and estimated to be the top three leading countries in the 2030s.
U.S places India high on their goal list to create a so-called “alliance.” Obama considers India to be one of the fastest growing markets and the best choice to stand against China due to India’s territorial advantage. It is why U.S and US companies are eager to enter India. Obama, in fact, promised to invest 4 billion dollars in the following two years at the US-India Summit. To delve into the cases of US companies, most of them focus on the point that the middle class of India can consume more than any other middle classes in the world. Large corporations of US like Apple, Google, Amazon, and Facebook look forward that the 156 million middle class would buy more iPhones, use more internet, deliver more products, and use more social media. In a nutshell, Obama and giant corporations are working together to gain the upper hand in India politically and economically.
If you think in a different way, taking advantage of US would be the best choice for Narendra Modi, the prime minister of India. By this measure, India was able to gain “privilege” from US such as in the case of US giving implied allowance for India to import Iran’s oil, and achieve their prerequisite of the Modinomics, which is to draw foreign investments. It’s time for Modinomics, the
Indian Thatcherism, to prove its power by boosting India up to join the leading nations.