Last week, Joe Biden has suggested to Boris Johnson, British Prime Minister that the democratic countries must have an infrastructure plan to counter China’s OBOR. But this plan in turn will highly affect India. The higher corporate taxes will finance the infrastructure projects of the President.
What is in The Infrastructure Plan?
The Infrastructure plan aims at modernizing 20,000 miles of highways and roads, 10,000 bridges, and the top 10 “economically significant bridges”. The plan includes $25 billion for airports, $20 billion for road safety programs, $17 billion for inland waterways and coastal ports. The proposal also includes $650 billion for ‘home infrastructure’, $400 billion for the ‘care economy’, $580 billion for manufacturing, training, and research. To put the cost of the proposal entirely on companies, the proposal would make multiple changes to the US tax rules.
Will India be Affected by The Infrastructure Plan?
India would be affected by the infrastructure plan as it would lose its influence over the Central and South Asian nations. But now, India has made its position much clear on the BRI. With the signing of the BECA agreement, India has gone all out to confront China by forging a military alliance with the US. So, there is a possibility that India will join Joe Biden’s plan. Even the QUAD alliance is also growing stronger with India being an important member.
TPT Policy Advocacy & Recommendations
- The global pandemic has crippled the economies of the major powers. So, it is questionable that in such a situation, the countries will be able to build a rival infrastructure plan that may cost trillions.
- President Joe Biden must bring up some strategic plans so that China could not surpass the US by any means. He must also keep an eye on the infrastructure plan so that it gets fulfilled well.