United States President Donald Trump’s strategic moves against India — 50% punitive tariffs, hiking the H-1B visa fee to $100,000, and revoking the waiver on sanctions against Indian participation in managing Iran’s Chabahar port — can potentially destabilise the Narendra Modi government.
There is also the looming prospect of the Halting International Relocation of Employment Act, introduced by a close Trump ally, Republican Senator Bernie Moreno. It seeks to impose a 25% tax on payments made by US companies to BPO (business process outsourcing) companies abroad and ban tax deductions for outsourcing-related expenses.
These moves can spell political trouble domestically for Modi, especially with political allies — Nitish Kumar of the Janata Dal (United) and N Chandrababu Naidu of the Tel