The US economy is on the verge of
coming out of multiyear downturn. The recent job and other reports are
encouraging and it is expected the Fed will increase the interest rate again in
coming months. In order to maintain its growth especially in election year, US government is trying hard to ensure that corporate win International contract.
In US there are lots of resentment within the locals that Foreign companies are
taking out local job and it impacted the government image as they failed to
control that which they promised during last presidential election.
At the same time; US is alsofacing tough situation in their bilateral relationship with Russia, China andMiddle East. The US initiated initiative to impose International sanction
against Russia is hurting more the US based companies compared to Russian
establishment given their strong relationship with third world countries.
With China, US is at loggerhead
due to South China Sea issue. Blame game is at the peak. Chinese got very
cautious about US movement in South China Sea and it is turning into flash
point and ofcourse in due course it will start to show the impact on US economy
as US government will slow down their dependency on China to procure low cost
product and now focusing hard to re-established their own manufacturing hub.
In my point of view, US main
trading partners are based out of Middle East region and their US is bleeding
their taxpayer $ to safeguard countries with their interest. Saudi Arabia
economy is in shamble due to their engagement in Yemen, low oil price and
higher cost on social welfare scheme. It impacted Saudi Arabia government to go
for the free hand based new technology to other infrastructure upgrade. At the
same time; major unrest in Iraq and Syria impacted the neighboring countries
will to spend more on new initiatives.
Most of the counties in LatinAmerica is struggling with their depreciating currencies to major slowdown in
economy along with political unrest in some of the countries.
Given the above environment, US
wasted no time to extend its arm towards India with clear approach of tapping
Indian marketplace as well as rebalance its strategic positioning in Asia
Subcontinent. Once the reluctant US while offering India any warfare system to
any other technology is now changed their approach while dealing with India.
Post Honorable Prime minister of India initiative of "Make in India";
US companies through their government diplomatic channel is offering to setup
manufacturing hub in India that include the technology transfer covering all
sector to grab the much needed business in India.
Indian government recent
decision to modernize infrastructure to Smart cities to Railways to Defence
itself is more than $300 Bn business opportunity for next 8 to 10 years. In the
mean time; China proximity with Pakistan also prompted US to come closer to
India to neutralize China growing clout. Given the above circumstances, Indian Honorable Prime minister with his master strategic move wasted no time and
attracted the leaders of most of the countries on the discussion table and
trying hard to bring in investment which India needed the most at this point of
time.
