Time to declare a second independence?

Victor Mallet reporting from Delhi for the Financial Times predicts an economic ‘windfall’ for India; unlike China it will not suffer much from any decline in global demand for manufactured goods, because its export sector is relatively small.

However, the Obama administration is said to have become more aggressive on trade enforcement, recently establishing a new taskforce across government agencies to co-ordinate litigation efforts.

It has decided to launch a special review of India’s intellectual property regime, a longstanding friction point between the two countries particularly when it comes to the use of generic medicines.

It also launched a case with the World Trade Organisation against India and the WTO ruled that a 2007 Indian ban on imports of US chickens, eggs and pigs violated global trade rules as US had not had an outbreak of avian influenza since 2004. Mike Froman, the US trade representative, called the WTO panel’s ruling a “major victory for American farmers”. According to US government estimates, US exports of poultry meat alone could exceed $300m a year once the restrictions are removed

But on Dec. 9th it was reported that India has decided to challenge this ruling and recent news gives them grounds for hope!

If India ‘plays to its strength’ – its strong domestic market – and resists American pressure to spend excessively on foreign made armaments and enter the global casino, it could become an even more stable and prosperous country.

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