India's Trade Opportunity with the US under Trump
Dr. Mukesh Aghi, President and CEO of the US-India Strategic Partnership Forum (USISPF), believes that the current political climate presents a unique opportunity for India to propose a trade agreement with the United States. He argues that President-elect Donald Trump would be receptive to such a deal, given his administration's focus on bringing manufacturing back to the US.
Dr. Aghi highlights several factors that support his claim. Firstly, India has already established trade partnerships with other major economies like the UAE and Australia, demonstrating its commitment to international trade. Secondly, the Trump administration's objective of boosting domestic manufacturing aligns with India's potential to serve as a reliable and cost-effective manufacturing hub.
Furthermore, Dr. Aghi points out that existing trade agreements between the US, Japan, and Australia could be combined to create a single, unified market. This would not only strengthen economic ties but also enhance security and technological collaboration between the three nations.
He emphasizes that a potential free trade agreement between India and the US would benefit both countries. It would ensure efficient movement of goods between the two nations, eliminating potential penalties on Indian exports. Additionally, it would encourage US companies to shift their manufacturing operations from China to India, taking advantage of India's skilled workforce and growing market.
Dr. Aghi cites the example of Apple, which has already begun exporting products manufactured in India. He believes that other US companies will follow suit, seeking to leverage India's growing market and reduce their reliance on China.
In conclusion, Dr. Aghi believes that the current political landscape presents a golden opportunity for India to forge a mutually beneficial trade agreement with the United States. This agreement would not only boost economic growth for both countries but also strengthen their strategic partnership.