Fortress America: India's gateway to global innovation
Donald Trump's return to the White House has reignited familiar fires: nationalist trade wars, stricter immigration, and a cold shoulder to international students and tech collaboration. But beneath the surface of this hardline resurgence lies a quiet irony—by closing its doors, America may be opening new ones elsewhere.
For India, this is not just an economic opportunity. It's a strategic moment to step into the vacuum and shape the next wave of global innovation.
President Trump's administration has wasted no time reviving key pillars of his earlier term. America First has been rebranded with more teeth; targeted tariffs, especially against Chinese goods, are rising again. Restrictions on H-1B and student visas have returned with greater stringency. And a more aggressive tech decoupling policy is cutting Chinese companies out of critical supply chains, export channels, and research collaborations.
The implications are profound. The US, long considered the epicentre of global talent and innovation, now seems poised to push some of that talent away.
Already, we are seeing signals of a shift. Canada, Europe, Australia, and even Southeast Asian nations are wooing researchers, startups, and students displaced by the US's policies. The idea of a multipolar innovation ecosystem—where talent circulates more freely between regional hubs—is gaining momentum.
Could this shift be a setback for America? Certainly. But for countries willing to build infrastructure, offer opportunity, and remain open, it is a moment of rare global realignment.
India finds itself at the right place, with the right potential and if it plays wisely, with the right timing.
First, consider talent. Tighter US visa policies could slow the brain drain. Thousands of engineers, researchers, and students who would have flocked to American universities or Silicon Valley may now look for alternatives. If India can offer a stable, aspirational home for research and entrepreneurship, many may choose to stay or return.
Second, consider higher education. American universities are becoming less accessible for international students. India, already one of the largest sources of global student migration, has an opportunity to strengthen its domestic institutions and build international collaborations. NEP 2020's push to allow foreign universities in India and encourage global partnerships is suddenly more relevant than ever.
Third, technology. The decoupling from China has created demand for trustworthy, democratic partners in semiconductors, Artificial Intelligence (AI), and electronics. India's production-linked incentive (PLI) schemes, partnerships with Taiwan and Japan, and its growing digital public infrastructure can position it as a serious alternative manufacturing and innovation hub.
Fourth, investment. Global capital is seeking new homes away from the geopolitical crossfire. India, especially with its demographic dividend, maturing startup ecosystem, and digital scale, could attract investors once bound for the US-China corridor.
If India is to seize this moment, it must focus strategically. Areas with the highest potential include:
None of this will happen by default. India must act decisively and deliberately. That means:
This is a moment to reform not just policy but mindset. It is about treating innovation as a national security and development imperative, not just a private enterprise playground.
Trump's America may be looking inward, but the world is still looking for partners, collaborators, and leaders. India—young, ambitious, and increasingly digitally integrated—has the chance to answer that call.
If we miss it, we may not get another chance like this in decades.
If we rise to it, we won't just benefit from America's retreat. We will lead where others step back.
This article is authored by Ananya Raj Kakoti, scholar, international relations, Jawaharlal Nehru University, New Delhi.
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