Rocket Obama: salesman of the year
Before analyzing Barack Obama’s, high profile, Rs. 900 Cr per day, India visit and the possible business opportunities it could generate for recession hit America. Let us first look at the American economy’s post recession standings that have witnessed a drastic shift after the subprime crisis.
With a growth rate of 2.4 percent in second quarter of 2010, America’s GDP is down, its national income is growing at about less than 2 percent per year, and most importantly the unemployment rate, a major concern for Obama administration, is at its highest in 25 years and may not be dropping anytime soon. Out of the total labor force of 154.5 million people, 15 million are unemployed. No doubt the US is in economic trouble, which is why US is out, hunting for potential markets like India to get its economy growing again.
Over his three-day visit Obama managed to secure deals worth $ 15 billion with India, assuring 54,000 jobs back home. Though this figure will be a drop in the ocean but for US it means a lot. Moreover, because of these deals, it is expected that in the coming 10 years 7 lakh jobs will be created in US.
Now, let’s unwrap the goodies, India will get in return. An assurance over permanent UN Security Council seat is what India can expect, which will eventually place India among the global high table. Next came the de-listing of India’s entities, mainly Indian Space Research Organization (ISRO), Defense Research and Development Organization (DRDO) and its subsidiaries after they were blacklisted by the US when India conducted the Pokhran nuclear blast in 1998. This move will help India to access and share Hi-tech technology. Last but not the least the multi-billion-dollar defense deals a win-win situation for both US and India.
Also, this trip has ended the speculations over America axing outsourcing opportunities from India. With a major win by the republicans (who are in favor of outsourcing) in the recently held elections the diminishing democrats have no option but to act accordingly. Also, the benefits that came along with outsourcing for American companies are abound and cannot be overlooked.
US economy is hurt but not down, there is still an opportunity for the American economy to return to growth. With the recent setback in the elections and a second term in White House in mind, Obama is leaving no stone unturned. It will be interesting to see how the leadership in New Delhi would maximize the opportunities arises out of Obama’s visit. Though Obama kept away from the K word but as far as US economy is concerned he has done his job.
With a growth rate of 2.4 percent in second quarter of 2010, America’s GDP is down, its national income is growing at about less than 2 percent per year, and most importantly the unemployment rate, a major concern for Obama administration, is at its highest in 25 years and may not be dropping anytime soon. Out of the total labor force of 154.5 million people, 15 million are unemployed. No doubt the US is in economic trouble, which is why US is out, hunting for potential markets like India to get its economy growing again.
Over his three-day visit Obama managed to secure deals worth $ 15 billion with India, assuring 54,000 jobs back home. Though this figure will be a drop in the ocean but for US it means a lot. Moreover, because of these deals, it is expected that in the coming 10 years 7 lakh jobs will be created in US.
Now, let’s unwrap the goodies, India will get in return. An assurance over permanent UN Security Council seat is what India can expect, which will eventually place India among the global high table. Next came the de-listing of India’s entities, mainly Indian Space Research Organization (ISRO), Defense Research and Development Organization (DRDO) and its subsidiaries after they were blacklisted by the US when India conducted the Pokhran nuclear blast in 1998. This move will help India to access and share Hi-tech technology. Last but not the least the multi-billion-dollar defense deals a win-win situation for both US and India.
Also, this trip has ended the speculations over America axing outsourcing opportunities from India. With a major win by the republicans (who are in favor of outsourcing) in the recently held elections the diminishing democrats have no option but to act accordingly. Also, the benefits that came along with outsourcing for American companies are abound and cannot be overlooked.
US economy is hurt but not down, there is still an opportunity for the American economy to return to growth. With the recent setback in the elections and a second term in White House in mind, Obama is leaving no stone unturned. It will be interesting to see how the leadership in New Delhi would maximize the opportunities arises out of Obama’s visit. Though Obama kept away from the K word but as far as US economy is concerned he has done his job.
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