President Obama's trip to India has resulted in $10 billion in deals for American businesses on Day 1. It turns out that President Obama has taken an unusual approach by bringing hundreds of American corporate officers with him to India to work on finding business opportunities for American exports to India, and American projects in India. While highly unusual, the approach of creating links between American businesses with foreign businesses and governments to create jobs in America may be one more notch in the Obama belt.
Demographically speaking, the largest generations of the American population are either preparing to retire, or are in school preparing to enter the economy. That means the bulk of American consumers are not in the prime of their spending on consumer products to grow the economy. To speed up the growth of the American economy, exports will be a key area. That is why continuing to develop alternate energy technologies is so important.
India has a massive population, but it also has significant goals for development. Both India and China have needs for energy in their most rural areas, but oil and gas will not meet those needs. There simply is not enough of it in the world, and adding so much demand for it will only increase the prices which are probably already too high for provincial people in the two countries. That means, they need alternative energies to develop.
India already has some projects whereby their students go to universities to learn how to build some technologies, and they are making them, and selling them in the provinces. The result is villages with reliable nighttime power for the first time. That means the child in the village no longer has to make a choice between working on the family farm to survive or doing homework for school. With light at night, the child can do both. It is creating new opportunities for Indians.
It is also creating opportunities for American companies who seek to meet the emerging needs of the Indian and Chinese consumers. Their workers are largely low skilled in the factories America outsources to. That means higher technology products and developmental products are industries that America has and can export to help India and China. It is a win-win situation.
These types of deals will increase production here, which also means increases in productivity and decreases in prices, and that benefits the American consumer. We will be able to purchase these goods at lower prices; and more importantly, alternative energies that are focused on microgeneration empower Americans to both live free of energy corporations, but also to minimize their monthly bills which allows them to spend in other areas.
Day One has been a big success for President Obama's trip. It is not enough to say all of our problems are solved, but it is a good start. Initial reports are that Day One will create about 50,000 jobs in America. Given some of the comments made on Day One, it may well lay the groundwork for far more jobs and far more business than we know at this point. It is good to see someone laying the groundwork for the future.