Amid fears of new tariff threats, renowned political expert Fareed Zakaria has given a clear strategic roadmap to India. He says that India should avoid over-reaction, be patient and maintain focus on long-term economic strength, because time is in India’s favor.

Speaking to India Today in Davos during the World Economic Forum (WEF), Zakaria said that India should not be worried about Trump’s instability.

Zakaria’s direct advice on US foreign policy

Zakaria said clearly, ‘Be patient. Trump is unstable, Trump has a different temperament. He said that India should avoid unnecessary confrontation with Trump and move forward handling the situation as much as possible.

Zakaria sarcastically suggested, ‘If he likes big, lavish state dinners, then give him a grand state dinner at Rashtrapati Bhavan, which is by the way four times bigger than Buckingham Palace.’ Zakaria said, ‘Britain had a few hundred horses, India may have a few thousand elephants.’ He said posturing and symbolism matter when dealing with leaders like Trump.

‘Ask Ambani how a party is thrown’

Zakaria further said, ‘You can also call Maharajas and Maharanis. If the government lacks imagination, then I would ask Ambani how to give a party that will influence the world. Trump likes to be treated like a king, so do it.

‘Don’t threaten Trump without force’

When asked whether India should challenge Trump publicly, Zakaria replied, ‘No.’ He said, ‘Trump knows when he has power and when he doesn’t. They exert pressure only when the balance of power is in their favor.

India does not have a hold like China: Zakaria

Zakaria said that at present India does not have the same leverage over America as China does. Play only when you have cards. Don’t bluff, Trump understands this very quickly.

Comparison of Manmohan Singh and Modi government

He said, ‘If you see the figures of Manmohan Singh and Narendra Modi governments, they are almost similar. Per capita GDP growth is also almost equal. Zakaria said, ‘Modi has been a good manager of the economy in most respects.’ He believes that India should focus on economic and social modernization instead of short-term shocks.

Consumption based economy is the biggest strength of India

Zakaria said, ‘India has a big strategic advantage. Its economy is mainly based on consumption. He told that ‘India, America and Indonesia are the only countries where the share of consumption in GDP is more than 60 percent. In China it is 30–35 percent.

Emphasis on export is also necessary

However, he warned that the importance of exports cannot be ignored. ‘Exports bring high-quality growth, good-paying jobs and access to the forefront of technology,’ he said.

Zakaria said, ‘The story of iPhone in India is remarkable. From zero, now about 45 percent of America’s smartphones are being supplied from India. He appealed to India to give more emphasis on advanced manufacturing and electric vehicles.

‘Don’t make trade deal a matter of life and death.

On India-US trade agreement, Zakaria said, ‘If a good agreement is reached, then great. But this is not a question of life and death for India. India is not going to be destroyed by this. Zakaria said, ‘Indian economy has very little impact on America. He is like a small pimple on a giant body. However, he also added that America’s role is very important in taking India up the value chain of technology and industry.