India Knowledge@Wharton | McCain a better bet for India?

Mon, Jul 21 2008. 12:05 AM IST

The Republican approach to trade may be better for India but neither McCain nor Obama will be as positive as Bush


With Americans facing petrol prices of $4 (around Rs170) a gallon, record home foreclosures and fears about unemployment, US presidential candidates John McCain and Barack Obama are increasing the focus on economic policy in their campaigns.

Illustration: Malay Karmakar / Mint.For the most part, the positions of Republican McCain and Democrat Obama fall along traditional party lines: Obama leans more towards government involvement in the economy, while McCain’s proposals rely on private sector solutions.

For US trading partners such as China and India, the trade debate is of keen interest. “If one was to look purely from a trade and outsourcing perspective, McCain seems to be a better choice for India,” says Ravi Bapna, a professor at the Indian School of Business (ISB) in Hyderabad. “But, when push comes to shove, even the Democrats, despite all their rhetoric during campaigning, will not be able to walk away from globalization. No US president can walk away from market-based mechanisms which are now so deeply embedded.”

“What are perhaps more important issues are geopolitical stability, the war in Iraq and how to get the US back to the intellectual standards that it once had and which have been eroded in recent years,” Bapna adds. “In that sense, Obama is much more of a dynamic personality who can really bring back the US’ intellectual place in the world.”

Rajesh Chakrabarti, assistant professor of finance at ISB, says the George Bush presidency was quite favourable for India. Chakrabarti spent nearly a decade at the Georgia Tech College of Management, and is thus keenly aware of both the US and Indian political processes and sensitivities.

“The (Bill) Clinton presidency was very good for India, too,” Chakrabarti adds. “Of course, it is difficult to estimate as to how much of that was because of the presidency or because of world events. If one looks back, since the collapse of the Soviet Union, the relationship between India and the US has warmed and improved almost continuously during both Republican and Democratic presidencies. The way in which the Republicans and the Democrats handle world affairs, especially in West Asia, could have an indirect impact on India. But, here also, I don’t see any major difference between the two in terms of new developments.”

Still, Chakrabarti says that he worries about the Democratic party’s trade stance. “In their election campaigns, the Democrats have been making noises about being more protectionist, less trade-oriented, reducing the flow of outsourcing, etc.,” he notes. “Whether it is rhetoric or whether they will actually implement it if they come to power is not very clear. I don’t really believe that they will in fact do any of this if they come to power. However, it seems on the face of it that the Republicans are better for India because of their open trade approach. McCain is probably a safer bet for India, in that not much is likely to change in terms of economic policies.”


More: http://www.livemint.com/2008/07/21000535/India-KnowledgeWharton--McCa.html?h=B

don't they build up their own god damn country instead of relying on outsourcing for all their real jobs?

It's all you hear, about how superior they are at doing everything.

:thumbsdown:

Let Mr. World is Flat hit the streets and see how the rest of us scramble for employment!