U.S.-India Deal: Boost for India, Bust for American Small Businesses?
Key Takeaways:
- The U.S. and India signed an agreement to help Indian SMEs expand globally.
- The deal received little attention in U.S. media but was widely covered in India.
- The agreement may harm U.S. businesses without protecting them.
- American SMEs face closures while India gains advantages.
A New Partnership: What’s the Big Deal?
In August 2024, the U.S. Small Business Administration (SBA) teamed up with India in a five-year agreement aimed at boosting Indian small and medium enterprises (SMEs) on the global stage. This partnership includes digital tools, access to capital, and training in export finance and green technology.
Media Mystery: Why the Silence in the U.S.?
Interestingly, while Indian media highlighted the deal, major U.S. outlets like The New York Times and CNN barely mentioned it. The few U.S. comments came from blogs, suggesting the deal has little impact on American businesses.
What’s in the Agreement?
The deal includes digital matchmaking, akin to a business dating app, connecting Indian firms with U.S. companies. It also covers training in finance and technology. However, it lacks safeguards for U.S. businesses, such as labor standards, raising concerns about unfair competition.
Risks for U.S. Businesses: A Closer Look
The agreement opens U.S. markets to Indian firms, potentially threatening American jobs, especially in sectors like customer support and IT. With over $36 billion spent on Indian services in 2023, concerns about job displacement grow. Additionally, India’s record on intellectual property (IP) issues is troubling, despite SBA’s lack of protections.
India’s Gain, America’s Pain
While India celebrates the agreement as a boost for its economy, American businesses struggle. In 2024, over 600,000 U.S. SMEs closed, hit by inflation and supply issues. This stark contrast raises questions about the SBA’s priorities.
The SBA’s Shifting Focus: Supporting Whom?
The SBA’s move towards international partnerships, without protecting U.S. businesses, leaves many questioning its mission. American SMEs face tough times, yet the SBA’s focus seems elsewhere, fueling concerns about their support.
In conclusion, the U.S.-India agreement may offer India a global boost while potentially harming American businesses. As India thrives, the SBA’s role in supporting domestic SMEs is under scrutiny.