Headline July 01, 2019/ '' 'INDIA'S U.S. INVERSE' ''

'' 'INDIA'S U.S. INVERSE' ''

''WHAT THE US IS TRYING TO DO is bully India on certain issues where India cannot take a decision is favor of the US.,'' said Ashwani Mahajan-

A leader of the Swadwdeshi Jagran Manch, a populist organization affiliated with Mr. Modi's party.  The group has pushed the government to pass policies favoring small Indian companies and farmers over foreign multinationals.

India exported $83.2 billion in goods and services to the United States in 2018, but just $5.6 billion benefited from the zero-tariff designation for certain developing countries, known as the Generalized System of Preferences.

In India, the main industries affected will be textiles, jewelry and auto parts.

Trump administration officials view the move as delivering on their promise to rewrite the trade rules for countries they believe have not sufficiently opened their markets to American producers.

President Trump has made India the latest target in his widening global trade war, but the country's newly re-elected prime minister, Narendra Modi, has bigger problems to address.

On Friday, some weeks ago, - the first day the of Mr. Modi's second term, and the same day the  White House terminated a special trade status for India -

The Indian government had reported the country's economy was growing at the slowest rate in five years and that unemployment was at a 45-year peak.

Mr. Modi and his new ministers responded with two acts that illustrated their top priority : reinvigorating the Indian economy.

With farmers suffering across the country, the first act of the new cabinet was to extend a program of cash handouts to cover 20 million more farm workers - a sector that Mr. Trump wants to open to  more competition from American growers.

The second was to create a pension system for small traders, a group battered by competition from India's leading e-commerce sites, which are owned by the American giants Amazon and Walmart.

''What the U.S. is trying to do is bully India on certain issues where India cannot take a decision in favor of the U.S,'' said Ashwani Mahajan.

The termination of the trade special status, which had eliminated trade tariffs on a small portion of India's exports to the United States, had long been expected .

The move taken, one recent Friday, was seen as the Trump administration's way to break a monthslong impasse in trade talks.

But Like Mr. Trump, Mr. Modi has embraced nationalist language and policies. Neither leader is likely to bend soon, and the Indian government made clear that it would put its own country's interest first.

''We have significant development imperatives and concerns, and our people have also aspire for better standards of living,'' the Ministry of Commerce and Industry said in a statement. ''This will remain the guiding factor in the government's approach.''

The end of the preferential trade status, which took effect one recent Wednesday, will not in itself have a major economic impact in India.

''Mr. Trump is ticking all the boxes basically : China done, Japan alerted and now India,'' said Harsh V. Pant, a professor of international relations at King's College, London :

''With this decision, Mr. Trump is getting into election mode.''

In India's case, the administration  is seeking stronger protections for American companies,  intellectual property, lower tariffs on imported medical devices and electronics :

The opening of India's markets to American dairy products; and an easing of India's recent protectionist measures against American technology and financial companies.

Mr. Trump has particularly focused on India's high Tariffs on imported Harley Davidson motorcycles.

And senior trade officials want to close $24.2 billion trade deficit the United States has with India in 2018.

''The U.S. expectation is now that the election is over, Modi can do more on subsidies,'' said Sreeram Chaulia, dean of the school of international affairs at O.P. Jindal global University, outside New Delhi.

At the same time, with Mr. Trump posed to begin his own re-election campaign, ''the U.S. wants to be seen as militant on trade to appeal to the base of Trump,'' Mr. Chaulia said.

''They are not backing down.''

The Honor and Serving of the latest Global Operational Research on India's domestic woes, continues. The World Students Society thanks author Vindu Goel.

With respectful dedication to the Students, Professors and Teachers of India, and then the world.

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