Contrarian play

Contrarian play

Walls seem to be going up all around the globe. US President Donald Trump is tightening the screws on guest worker visas such as H1-B, a move causing concern to the Indian IT industry. Over in Australia the Malcolm Turnbull administration is abolishing a skilled visa programme popularly known as the 457 visa, whose majority users have been Indians. How should India respond to such walls? Trade wars won't serve its interests. Not just because US is the largest market for Indian exports but more broadly because global trade has been a key engine of this country's economic dynamism.
This is the time for what investors call contrarian play, which at its core means not falling for the hype of the herd but instead seeing the truer picture. If India is to endure as the world's fastest-growing large economy, it will not be on the back of protectionism or economic nationalism no matter how much they are trending globally today. Instead our tryst with destiny depends on reforms, liberalisation, deregulation, becoming a better place to do business, all of which in turn will determine India's ability to provide inclusive growth and fulfil its people's elevated aspirations. India has to turn others' walls into its opportunities.
Just between December and March, the number of Indians in the US searching for jobs in India has risen more than tenfold. It's becoming tougher for Indians to work abroad. If that talent is looking to return here or stay on instead of emigrating, let's not waste these human resources. Let's innovate, reform our markets, build new businesses and grow new competencies, which will even incentivise overseas corporations and foreign workers to relocate here.
It's also important to note that the isolationist populism that finds free global trade objectionable, isn't on the ascendant everywhere.Over in Canada, for example, Prime Minister Justin Trudeau is firmly holding the line that building walls does not create opportunity .In upcoming French presidential elections Emmanuel Macron, one of the frontrunners, is an unapologetic globalist; far from championing Frexit like Marine Le Pen he predicts Brexit will prove a costly mistake. Against a divisive, fearful landscape Trudeau and Macron are standing for liberalism and optimism. These are the qualities a forward-looking economy and polity needs, rather than parochialism, culture wars and navel-gazing politics of the variety that RSS might promote.