Could a Trade Deal with the US Enhance India's Regional Influence?
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Synopsis
The ongoing trade negotiations between the US and India could significantly enhance India's role in regional security matters. As both nations strive for a beneficial agreement, the potential for India to become a key player in global supply chains is growing. Find out how this partnership could reshape the economic landscape.
Key Takeaways
- High-level negotiations between the US and India aim to finalize a trade agreement.
- Reducing tariffs could enhance India's market presence.
- India's skilled workforce offers alternatives to US companies.
- US exporters see opportunities in India's energy and defense sectors.
- Trade between the two nations reached $128 billion in the last fiscal year.
New Delhi, Sep 18 (NationPress) A report indicates that the high-level trade discussions between the United States and India, culminating in a bilateral agreement, may enhance India's influence in security and regional matters. The US aims to reduce reliance on Chinese supply chains, and India's vast, skilled workforce offers appealing alternatives for American businesses, according to findings from India Narrative.
Negotiators have suggested that lowering tariffs on pharmaceuticals, textiles, and IT services could enable India to regain lost market presence and solidify its role as a viable supply-chain hub, rivaling China.
In addition, India's growing appetite for energy and sophisticated defense systems creates substantial opportunities for US exporters, the report highlights.
New Delhi has urged Washington to retract punitive tariffs that diminished its exports to the US from $8.01 billion in July to $6.86 billion in August.
Both parties seem focused on preventing escalation and steering discussions towards a “mutually beneficial” agreement, according to the report.
The Ministry of Commerce in New Delhi reported that trade in goods and services between the two nations reached $128 billion in 2022-23, marking a 7.7 percent increase from the previous year.
Some experts and policymakers believe that a sudden shift in the US approach towards India can be attributed to Prime Minister Narendra Modi's recent visit to China for the Shanghai Cooperation Organisation (SCO) summit.
In a recent exclusive interview with IANS, Congresswoman Deborah Ross described PM Modi's engagements in China as a “strategic move” to signal to the United States that he has alternatives.
Analysts argue that the adverse impacts of US tariffs are mitigated by India's robust domestic foundations, strong consumer spending, and GST 2.0 reforms. They assert that Indian markets have adjusted to tariff uncertainties and are now prioritizing fundamental economic indicators.
Previously, during a high-level meeting in New Delhi, amid warming ties between both countries, leaders resolved to accelerate efforts to finalize a beneficial trade agreement.
A delegation from the United States Trade Representative, led by Chief Negotiator Brendan Lynch, arrived in India to engage with Indian officials, headed by Special Secretary for Commerce, Rajesh Agrawal.
Point of View
The ongoing trade discussions between the US and India represent a pivotal moment in international relations. As both nations seek to solidify their partnership, it is crucial that the outcomes prioritize mutual benefits, economic growth, and regional stability. Aligning interests could lead to a stronger, more resilient economic framework for both countries.
NationPress
20/09/2025
Frequently Asked Questions
What are the main objectives of the US-India trade negotiations?
The primary objectives include reducing tariffs on key sectors, enhancing mutual trade benefits, and increasing India's leverage in regional security matters.
How could India benefit from this trade deal?
India could regain lost market share, strengthen its role in global supply chains, and attract US investments, especially in energy and defense sectors.
What impact do tariffs have on India's exports?
Tariffs have led to a decrease in India's exports to the US, compelling the government to advocate for their reduction to boost trade.
What role does India's skilled workforce play in these negotiations?
India's large and skilled workforce presents attractive alternatives for US companies looking to diversify away from Chinese supply chains.
What were the trade figures between the US and India for 2022-23?
Bilateral goods and services trade reached $128 billion in 2022-23, reflecting a 7.7% increase from the previous year.
