Does Biden at White House offer an opportunity for India to get a win-win deal?

On November 4, 2020, the day after the US elections ended, the US Government released an official statement that said: “The US calls on Cote d’Ivoire’s leaders to show commitment to the democratic process and the rule of law. We urge all parties, groups and individuals to engage in inclusive dialogue to find peaceful solutions to their disagreements to heal national divisions. Grievances related to the presidential election should be resolved peacefully and transparently through legal processes.”

One must reflect on whether this statement is more apt for leaders in the US that has just spent the last eighteen months in probably the most divisive and expensive election in US history.

As the transition which should have by now begun and is unfortunately deliberately hijacked and delayed begins, there is renewed hope of a new administration that will focus more on critical issues that are a need of the hour domestically for Americans such as:

1. Addressing the Covid crisis and an effective distribution strategy across the nation,
2. Universal healthcare at an affordable cost,
3. Increasing the minimum wage,
4. Addressing domestic security issues that have led to deep divisions in the country and distrust with the law and finally,
5. Focus on revitalising growth in the economy so that the record numbers of unemployed people can get back to gainful employment.

While domestic issues will probably take the majority of the near term focus of the Biden Harris administration, there are other critical areas that need urgent attention such as signing the Paris Climate Accord to address Climate Change and a cohesive green energy policy for the US.

Combine this with a revitalized foreign policy that will leverage on President Biden’s core long-term strengths of statesmanship for the US to rebuild its alliances with Nato, while re-establishing trust within the free world, contain the rising threats from Russia and China while establishing stronger, more deeper ties with India to bring a better balance of power in South Asia.

One positive offshoot of the Trump administration has been the breakthrough and encouraging ties between the UAE and Israel and this may be a good possible option to explore further thus changing the old dynamics and embracing a new one.

India has the opportunity and stands on the cusp of building a stronger more deeper and effective economic and security partnership through more cross border economic partnerships by opening its market while accessing that of the US for Indian businesses and being the de facto go to country for US businesses as they look at other options besides China from a security threat standpoint and business rivalry.

Additionally, as Indians generate wealth and grow their economy, it is important that commerce and business between the two nations benefit both the US and India.

India has a substantial trade deficit with the US and needs to open its market to more US businesses, thus allowing competition to thrive while at the same time maintaining safeguards to protect and grow domestic small and medium businesses.

In many ways, India is at serious risk of moving more closer to an oligopoly similar to that in Russia, and it is, therefore, critical for the government to facilitate and encourage avenues for small and medium-sized businesses to access technology and innovation while using their strong competitive spirit to replace China in the US as a manufacturing hub thus encouraging more Investment from the US into India and vice versa.

From a financial services industry standpoint, it would be wise to consider allowing Indian businesses to cross list to access global capital and facilitate regulations for Indians to build a more robust global asset allocation strategy that includes access to the best global businesses through fund investments will go a long way to a faster integration of India with the world economy while allowing Indians to benefit from the growth in the US.

Overall, with the new political leadership in the US, it’s a very bright future ahead and an opportunity for India in almost every sector from manufacturing, agricultural and services. A fantastic opportunity to establish a holistic win-win relationship between the two countries that can benefit both immensely over the long term.