The article first appeared in New York Times on Feb 12, 2025.
India-US trade relations have long been a cornerstone of economic diplomacy between the two nations. Over the years, trade between India and the United States has grown significantly, making the partnership beneficial for both economies. India remains one of the few Asian countries that trade more with the U.S. than with China, underscoring the strategic importance of this relationship. However, trade imbalances and tariff disputes have occasionally strained the partnership, particularly during the Trump administration.
One of the main concerns in India-US trade relations has been the trade surplus India enjoys over the United States. In recent years, India has exported goods worth approximately $87 billion to the U.S., while importing $42 billion, leading to a trade surplus of $46 billion. Former President Donald Trump was vocal about his dissatisfaction with such trade deficits, often criticizing countries that exported more to the U.S. than they imported. India was no exception, and its tariffs on American goods, particularly motorcycles like Harley-Davidson, became a point of contention.
During his presidency, Trump referred to India as the “tariff king” due to its high duties on certain American products. His administration pushed for lower tariffs and fairer trade practices, leading India to make some adjustments. Despite these disagreements, the overall trajectory of India-US trade relations remained positive, with both countries recognizing the need to strengthen economic ties.
Looking forward, there are several opportunities for India and the U.S. to enhance their trade partnership. The technology sector, pharmaceuticals, and renewable energy are promising areas for deeper collaboration. India’s growing digital economy presents new markets for American companies, while U.S. firms can benefit from India’s skilled workforce and expanding consumer base. Both nations can work towards reducing trade barriers, fostering investment, and creating a more balanced trade framework.
While political changes may influence trade policies, the economic relationship between India and the U.S. remains robust. By addressing tariff disputes and leveraging emerging sectors, both countries can ensure that India-US trade relations continue to thrive, benefiting businesses and consumers on both sides…
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