India: The new trade capital of the world?
Thanks to Indias Prime Minister, Narendra Modi, more and more countries are looking to trade with India every day. What does this mean for the future?
Bringing production to India
Modi has become widely known and celebrated throughout India and the world for many of the new policies and initiatives he has brought into action since becoming Prime Minister. One of his latest policies works to bring technology products to India - and it's working rather well.
So far, over two dozen technology companies have pledged over $1.5 billion in investments, including tech giants Samsung and Apple. Prior to these deals, most technology companies placed all of their products in China. So what exactly is the policy that is bringing many of the world biggest companies over to India?
The policy in question makes electronic manufacturers eligible for a payment of 4%-6% of their incremental sales over the next five years. Who wouldn't want to be able to claim back some of their sales simply by producing their product somewhere else?
A friendship with America
Not only is India befriending tech giants, but it is also building a growing relationship with America. Working together, Donald Trump and Modi have made it their mission to increase the strength of the relationship between India and America - and to up the amount of trade taking place between the two countries.
This relationship comes with many perks for both sides. The president has enabled India to become the first non-treaty ally to be offered an armed MQ-9 Unmanned Aerial System. On the flip side, this relationship helps to ensure that the Indo-Pacific region remains free and open for America. Overall this relationship is massively beneficial for both parties and will only continue to grow throughout the rest of Trump's presidency.
As I mentioned, this relationship will only continue to grow in the future. Both Trump and Modi are determined to build and long and prosperous relationships. I'm sure that many more deals will be agreed-upon and this will all pave the way for rebuilding after the COVID-19 pandemic has come to an end.
Given the massive success of the technology initiative, India will more than likely replicate these policies for other major worldwide industries. This will mean seeing a massive shift from the usual China-based production we are all used to, towards a heavily weighted India-based production model.
So far these changes have only been positive for all countries involved, so there's a very, very good chance we will see more countries joining in on the action in the near future. Within just a few years, every major country in the world will be trading with India in some form or another.