By Manoj Kumar
India is getting ready for doable commerce talks with the US, aiming for elevated investments from U.S. firms and better exports as soon as President-elect Donald Trump takes workplace.
Whereas aiming to guard its producers from potential U.S. tariff hikes on its exports, India is exploring methods to strengthen ties with Washington as Trump has threatened tariffs of 60% and different curbs on imports from China.
Listed here are key industrial points between the 2 nations:
TRUMP POLICY ON CHINA
India seeks to leverage Trump’s coverage by capitalising on U.S. commerce pressure with China, aiming to attract away from it investments and companies diversifying provide chains.
To align with Trump’s “America First” coverage, India is able to supply extra incentives akin to tax cuts and land entry in states like Andhra Pradesh, Gujarat and Tamil Nadu in industries akin to semiconductors, electronics, plane components, and renewables.
India additionally seeks to combine into U.S. international provide chains by supplying low-end and intermediate merchandise, from chips and photo voltaic panels to equipment and prescribed drugs.
ENERGY AND SECURITY
To sort out U.S. considerations on commerce imbalances, India is open to growing imports of power merchandise, akin to LNG, and defence gear whereas retaining its impartial overseas and commerce insurance policies.
Discussions on co-producing Common Electrical’s, fighter jet engines by state-run Hindustan Aeronautics in India, have made little progress.
However India hopes the 2 nations’ 2023 defence industrial co-operation roadmap will fast-track expertise sharing and co-production initiatives.
BROADER TRADE-CUM-INVESTMENT PACT
The federal government and trade teams favour a broader commerce and funding pact with the US to assist Indian producers combine into international provide chains whereas retaining coverage flexibility to safeguard nationwide pursuits.
BOOST TO EXPORTS
In return, India seeks to extend exports in prescribed drugs, clothes, footwear, engineering items, chemical substances, areas the place it has a rising comparative benefit over China.
AIMING FOR U.S. INVESTMENTS
India is focusing on higher U.S. investments, impressed by Apple Inc beginning manufacturing of iPhones within the nation. India hopes to lure extra firms into manufacturing by providing incentives, streamlined regulatory approvals, and inexpensive land.
America is already India’s third-largest investor, with $65 billion in direct investments from 2000 to 2023.
SELECTIVE TARIFF CONCESSIONS
Advisers have prompt contemplating selective tariff cuts on objects akin to pork and Harley-Davidson bikes, which have restricted home demand. Broader concessions may very well be negotiated in change for beneficial properties akin to extra visas for Indian professionals and export-boosting investments.
TWO-WAY TRADE
Two-way commerce between India and the US, India’s largest buying and selling associate, surpassed $118 billion in 2023/24, with India posting a commerce surplus of $32 billion.
Trade estimates recommend commerce may develop by $50 billion inside two to 3 years, highlighting the expansion potential for stronger financial ties.
This text was produced by Reuters information company. It has not been edited by World South World.
