India and the US

 [[{“value”:”Good op-ed from Arthur Herman and Aparna Pande: [H]ow America approaches its relations with India — the world’s largest democracy, its most populous nation and very soon its third-largest economy — may determine the balance of global power for the 21st century…As the U.S. looks for a strong strategic partner to contain China’s current hegemonic
The post India and the US appeared first on Marginal REVOLUTION.”}]] 

Good op-ed from Arthur Herman and Aparna Pande:

[H]ow America approaches its relations with India — the world’s largest democracy, its most populous nation and very soon its third-largest economy — may determine the balance of global power for the 21st century…As the U.S. looks for a strong strategic partner to contain China’s current hegemonic ambitions, India stands out as the one country whose economic might, military potential and political values can decisively shift the balance of power toward the U.S. and other democracies around the world.

Over 17 percent of the world’s population lives in India. India is poised to become the world’s third-largest economy by 2030 (its GDP stands at $3.94 trillion and is expected to hit $10 trillion by 2035). Its economic growth has stayed around 7 percent per year for the last decade, and it promises to remain robust in the future.

…As for cultural affinities with the U.S. and the West, it’s important to remember that India is the largest English-speaking nation in the world. It’s a vocal supporter of the global norms and multilateral trade institutions such as GATT and the WTO, which sustain a liberal global order. 

…For the partnership to really deepen, however, there are important steps both sides must take.

First, India needs to open up its still relatively closed economy, a legacy from its socialist past. It needs to undertake the next generation of market reforms, bolster manufacturing, continue to build up its infrastructure and invest even more in its human capital. India also needs to increase its defense spending from the current 1.6 percent to 2.5 to 3 percent, and diversify its suppliers to include more important ones from Western countries, including the U.S.

Second, the U.S. would benefit from American companies treating the Indian market as their alternative to China in the civilian manufacturing, high-tech and defense-industrial spheres. We also need to respect the fact that as a post-colonial country with a world-class economy, and one with a 5,000-year-old civilization, India will always see itself as a global power, not as a junior American ally, with strategic interests separate from — albeit largely aligned with — those of the U.S.

The emergence of India as a global power will permanently alter the dynamic of competition between the U.S. and China. A president who can correctly guide a closer strategic partnership between India and America will not only counterbalance China’s global ambitions and economic and military might, but could trigger a new era of growth and prosperity for both countries — indeed, for all three.

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