Former US Commerce official Atman Trivedi pulls no punches: the India-US trade framework is a ‘positive development’ with ripple effects across economies and geopolitics. From his perch at DGA-Albright Stonebridge Group, Trivedi—who shaped US-India commercial ties—foresees export booms, supply chain evolution, and strategic acceleration.
In an in-depth exchange, he outlined how the interim deal benefits businesses bilaterally. ‘Export surges await both sides, empowering SMEs in diverse markets,’ Trivedi said. The framework unlocks US industrial goods for India and vice versa for select Indian sectors, fueling Modi’s manufacturing vision and US export growth.
India’s largest export destination, the US, will welcome more homegrown products, turbocharging Make in India globally. Conversely, US firms gain from India’s tariff reductions in its vast consumer base. ‘Easing high tariffs opens India wide for American goods,’ he stressed.
For India, it’s a competitive masterstroke. Zero tariffs on some industrial exports and cuts from 50% to 18% on others outpace what Vietnam, Indonesia, or Pakistan endure. Key sectors like textiles and gems poised for US inroads.
Strategically, market liberalization embeds India in resilient global chains, curbing over-reliance on unfriendly partners. The $500 billion procurement pledge—spanning defense, energy, Boeing planes—reflects aligned Indo-Pacific priorities. ‘More defense and energy imports from India make sense,’ Trivedi observed.
Challenges loom: the target dwarfs 2024’s $87 billion imports, necessitating Herculean efforts. Non-tariff barriers—licensing, standards, localization—persist as US pain points. Skilled migration via H-1B remains fraught, a wildcard in bilateral relations.
Trivedi concludes this pact as a pivotal step toward mutual prosperity, blending commerce with security in an uncertain world.