MODI’S NEW POLL MASCOT? THE HUMBLE GAMCHA India gangs up with China, EU against US

Plunges into trade war by imposing tit-for-tat duties

What is the nattily dressed PM Modi wearing these days? A gamchha? The kind Yogendra Yadav wears in TV studios?

That was PM Modi’s signature accessory on the International Yoga Day -- a piece of coarsely woven cotton towel draped around his shoulders. Quite a contrast from, say, other cool accessories he has indulged himself in, including the trendiest of sunglasses and panama hats.

The humble ‘gamchha’ would make Arvind Kejriwal’s nondescript muffler - his trademark winter accessory -- look surely downmarket.

Rahul Gandhi had famously alleged that the NDA was a suit-boot ki sarkaar. But what will he now say about the PM’s new sartorial choice? Maybe, this is symptomatic of a government that is out to woo the distressed farmer.

Though, at a deeper, metaphysical level, it is also symbolic of a prime minister’s long journey from the Modi kurta to his classic monogrammed suit, the one that had his full name engraved in gold. And, now, he is completing a full circle with the ultimate gamcha!

To that extent, Gandhi, in his customary kurta-pyjamas, is able to make a better impact on the hapless farmer, so long as he does not keep pulling up his sleeves. The gamcha is, after all, a poor farmer’s multi-purpose piece of cloth with which he wipes the sweat of his brow.

Nothing could be a better mascot for the BJP government in the 2019 general elections. Nothing could also be a better trademark for a man whose constant refrain is that he started out as a tea vendor!

The gamcha could also symbolise the makeover of a party perceived to be probusiness to one that identifies with the working population. With that the BJP’s transition from the sublime to the mundane would be complete. India has plunged into a trade war with the US -- at least it will not take the hefty tariffs imposed by President Donald Trump lying down.

On Thursday, India aligned itself with China and EU which are already reeling under the tariff hikes, by announcing higher duties on several goods imported from the United States.

The decision to hike duties is Modi government’s tit for tact act for the unilateral increase in tariff by the US on certain steel and aluminium products earlier this year which had tariff implication of USD 241 million on India. The duty hike by India would have an equivalent tariff implications for the US.

It is India’s case that Trump's 25 percent and 10 percent duties on steel and aluminium, respectively, violate the global trading rules and have hurt its exports.

At least, higher import duties by the US exert further pressure on the current account at a time when foreign investors are exiting emerging market stocks and bonds for safer haven assets, said media reports.

Accelerating growth has given President Trump a stronger hand as he considers more tariffs and takes a more confrontational approach on trade, reports the New York Times.

So, as growth slows in Europe, China, Japan and elsewhere, the United States finds itself at the top of the global economy. It is also less exposed to the fallout from an escalating trade war since it does not rely on exports as much as other countries. It all gives Trump leverage with world leaders, potentially forcing them to make concessions.

But his threats could also backfire. An all-out trade war will prove detrimental to global markets. This is because global economic growth hinges on the free movement of goods, adds the NYT.Economists warn that the president’s clout is limited and that his attacks on the trading system could dampen the outlook not just in other countries but also domestically.

In a series of tweets, the US President recently pointed out that the US had lost $800 billion in yearly trade deficit because of its ‘very stupid’ trade deals and policies. Trump is determined to roll back these policies but India and China will prove big humps.