An analyst said India has “lot of potential down the road” and could become a “strategic partner with the U.S.” in Asia.
Although it is not comparable to China in many respects, it could become the alternative that manufacturers are looking for after the prolonged and growing tariff increases, Rodger Baker, senior vice president of strategic analysis at geopolitical intelligence firm Stratfor, explained to CNBC.
“India is still a very large country,” said the expert. “It has a relatively robust economy, (it has) a lot of potential down the road.”
“It is not a true counterbalance to China in the Indian Ocean basin but it is certainly a country that can be a strategic partner with the United States in that region,” he added.
The analyst’s statements came after President Trump appeared with Indian Prime Minister Narendra Modi at a rally in Texas before 50,000 American Indians on Sept. 22.
Deafening drums marked the entrance of President Trump and Modi as they clasped hands and walked across the stage in a packed Texas stadium, sending a message of unity between “the world’s two largest democracies.”
“Ladies and gentlemen, I present to you my friend, a friend of India, a great American president, Mr. Donald Trump,” said Modi to the crowd.
“When I met him for the first time, he said to me ‘India has a true friend in the White House,’” Modi said. “Mr. President, this morning in Houston, you can hear the heartbeat of this great partnership in this celebration of the world’s two largest democracies.”
“Prime Minister Modi and I have come to Houston to celebrate everything that unites America and India: our ‘shared dreams and bright futures,’” said President Donald Trump.
“I’ve also come to express my deep gratitude to the nearly 4 million amazing American Indians throughout our country,” the American leader added, suggesting that the tariff differences between the two leaders last summer were over before being eclipsed by the intensifying of the U.S.-China trade war.
Now, the negotiators of the world’s first and sixth largest economies would be trying to reach an agreement at the UN General Assembly in New York, Reuters said.
While the relentless escalation of trade tariffs between the United States and China has disrupted the global economy and rocked markets in recent weeks, it has been a blessing for other manufacturing countries.
“India could increase its trade footprint in (the) midst of the U.S.-China trade conflict, particularly under categories on which US has imposed tariffs on China,” predicted Singapore bank DBS Group in an August report estimating an increase of $11 billion as some manufacturers moved production to the country, according to CNBC.
It should be noted that other, smaller Asian nations such as Vietnam, Taiwan, South Korea, and Malaysia, along with South American countries such as Chile and Argentina, have also begun to benefit from the trade conflict between the superpowers and are bringing back to their territories the factories they had in China.