With Bush’s re-election, India’s honeymoon with America is over! Here are the reasons!
Sudhir Chadda, Special Correspondent
November 05, 2004

No matter what you think about the Bush victory, outsourcing to India will come to an abrupt slow down; George Bush is first a patriotic American and then a free trade promoter. One thing happened to Bush during the recent election debates. He got educated on touchy issues and the way he is, once he feels something is right, he gets it done!

Americans are getting hurt because of export of jobs to India. Americans are getting hurt because of artificially lowered Indian and Chinese currencies. Americans are getting hurt because of extensive oil price caused by excessive demand of Petroleum products in India and China. Bush will not tolerate that. The new Bush Administration will ask India to be fair in trade. The Administration is controlled and represents big US Corporations. While outsourcing somewhat helps US Corporations, Bush Administration will force India to open up its trade borders specially the financial services industry. It will be interesting to see how Tata, Birla and Reliance finally compete with International companies in a fair turf.

The left parties will never agree in letting American financial services and insurance companies have a free access to Indian market. And there will be the start of the tussle. 

America will require India facilitate creation of jobs in America. Ronald Reagan in his second term dealt in a similar way with the Japanese. In late eighties, Reagan decided to put a quota on imported Japanese cars. Japanese shifted most of their car manufacturing factories to USA. Japan entered a fourteen-year deflation and severe recession. India may face a similar situation.

Ideologically the left parties who really control the Government are anti-American. The CPI(M) and CPI leaders have got many of their children educated in USA but they survive politically by spreading anti-Americanism and anti-capitalism. And they will not let Manmohan Government allow Americans to come into India and sell services so easily.