A smart US-India economic partnership can help address similar economic challenges that each country faces nowadays. Discuss (200 words)
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IAS Parliament 6 years
KEY POINTS
· Despite vastly different levels of economic development, India and the US increasingly face a number of similar economic challenges.
Similar economic Challenges
· Both countries need to
a) rapidly create new jobs
b) move people into the middle class
c) take advantage of the opportunities that the globalization offers
d) Meanwhile, mitigating the challenges of globalization to sustainable domestic growth and strong and equitable democratic societies.
· Contending these challenges will require effective domestic economic policies that address not just interest rates and investment, but also healthcare and education.
· But, International economic partnerships will be a key part of the solution as well and working together, the US and India can advance shared prosperity.
Areas of co-operation
· Three areas of bilateral cooperation that could boost economic growth that reaches all sectors of society in both countries.
· Infrastructure Investment – The two countries must invest in infrastructure, as it is a perfect sector to explore means of cooperation.
· In order to link up investors with ripe investment opportunities, both countries should hold institutional investor summits. This focus can boost long-term economic growth and job creation in both countries.
· Employment trends – Both countries must develop new and innovative ways to contend with the changing landscape of employment.
· By holding bilateral dialogues focused on the future of work, policymakers, entrepreneurs, technology experts, and community leaders can address employment trends.
· The community needs to refine policy solutions that leverage the changing nature of work to create stable, well-paying jobs and empower citizens.
· The two countries should also expand the United States-India Science Technology and Endowment Fund, with an emphasis on the marketability of the research outcomes.
· This research can be the basis of building the digital infrastructure necessary to help people find jobs and skills training.
· Sub-national cooperation – It is critical to economic growth in these two large, diverse federal democracies, where states and cities will be key factors as they craft solutions that meet their regions’ unique needs.
· Large states and cities should create their own offices of international affairs, and work with the foreign ministries to connect one another with technical training, capacity building, and best practices.
· By leveraging the ties that already exist, and through a coordinated strategy of investment and innovation, a smart US-India economic partnership can help each country improve the condition of its people.
