Published On : Tue, Feb 7th, 2017

Trump’s jobs policy to hit Modi’s Make in India plan

President Donald Trump’s bring jobs back to America policy could challenge Prime Minister Narendra Modi’s Make in India initiative, Chinese media warned today, even as it commented that the United States continued engagement with Asian allies may benefit Indo-US ties.

It is being speculated that Trump could request more access to Indias market while following protectionist policies at home, an article in the state-run Global Times said.

This move would impact firms outsourcing to India and Indian exporters, particularly in the sectors of IT and pharmaceuticals. Currently, India has one of the largest numbers of educated, technically trained people in the world, making it a favoured outsourcing destination for some of the largest US firms. Trumps bring jobs back to America is a challenge to Modis Make in India, it said.

The article noted that Trump has directed the Department of Labour to investigate all abuses of visa programmes that undercut American workers.

If any visa restrictions are imposed, they would definitely constrain the movement of Indian IT professionals. Indians are believed to be the largest recipients of H-1B visas in the US, and IT companies that outsource to India are among the top sponsors of such visas. Such a move will definitely not go down well with Indian public as well as leaders, it said.