The worldwide rage against Chinese products and the US tech giants such as Google and Facebook announcing to invest billions of dollars in India indicate that people’s trust in China is fading away while India emerges as a bigger competitor. Last year, Finance Minister Nirmala Sitharaman slashed the corporate tax rates, which was a major barrier for the foreign companies who were willing to invest and set up their operations in India. With the slashing of corporate taxes, India could be a very attractive investment place, Larry Kudlow, White House Economic Advisor said while talking to reporters here, PTI reported.
On a series of investments being announced by the major US firms like Google, Facebook, Amazon, and Walmart into various Indian companies lately, Larry Kudlow said that he had been to a couple of bilateral meetings with the Indian leaders, which tells that people are losing trust in China and India becomes a big competitor. However, he also said that India is a very protectionist country. On the other hand, the top economic advisor to Donald Trump blamed China for hiding the true condition of coronavirus and suppressing the freedom of Hong Kong, which is a semi-autonomous Chinese territory that has a special trading relationship with America.
Earlier this year, US President Donald Trump said that Prime Minister Narendra Modi is a tough negotiator but both nations will finalise a large bilateral trade deal very soon. It was later reported that there have been advancements in the negotiations between the two countries. The Indian government also released a report on a $500 billion roadmap, stating that India and the US are engaged in a true spirit of friendship and the $500 billion trade goal in the next ten years is certainly achievable.
Meanwhile, Indian exporters are also likely to regain the trade preference under the Generalized System of Preference (GSP) soon. The US is mulling over restoring India’s beneficiary status on receiving a counterbalancing proposal from New Delhi. Earlier, the US withdrew India’s trade preference due to a high retaliatory tariff on imports from the US.