The new reality of America and India’s capability of absorbing shocks

The US is spending more than it is earning from taxes and is compensating for the shortfall by raising money through government bonds or treasury bonds. It was also revealed that in the last few decades, it has raised so much money from bonds that by the beginning of 2025, the government have a debt of more than $34 trillion.

The US has large private technology companies like Google (Alphabet), Microsoft, Amazon, OpenAl (ChatGPT), Meta and Apple, which dominate the whole world. But that country is neck deep in debt.

The general answer is that, these are private companies, not the government, and their profits are distributed among shareholders, founders and officials. The US government does not earn from it.

If the deficit continues like this in the US then there will be chaos in the whole world, and currency markets will be in a state of panic.This could also disrupt supply chains, killing demand in the US and reducing exports globally, especially from Asia.

This also means that technical orders, outsourcing of services and imports of raw materials will be affected and India will also be in trouble as its revenue from IT outsourcing to the US will be reduced drastically.

In the new world, western markets like the US will become increasingly protectionist. All the major actions of Trump are related to protectionism, whether it is increasing import duty on goods coming to the US or demanding reduction in import duty from other countries on goods going from the US.

Should India become a creative country? Which does not dream of big industries but becomes capable of absorbing shocks from the bottom to the top. Because big industries become vulnerable to changes taking place in the world.

India should focus on its services edge, digital prowess and large workforce as these will be the most valuable assets in the world once the dollar or US monopoly is gone.

So is it time to rethink India’s economic strategies and gear up for the new world to come?

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