While the op-ed focuses on U.S.-China trade, the broader point – that growing trade and investment requires our leaders to reduce uncertainty – applies just as well to the U.S.-India relationship. And on that front, we’ve seen some promising developments. During a positive meeting between Prime Minister Modi and President Trump at the G7 Summit, the two leaders agreed that USTR Robert Lighthizer and Minister of Commerce Piyush Goyal should meet to discuss a broad range of trade issues, preferably before PM Modi’s visit to the United States in September. Prime Minister Modi also highlighted plans for India to step up energy imports from the U.S., a theme that will carry into the PM’s trip to Houston for the Howdy Modi Summit and a roundtable discussion with CEOs from top U.S. energy companies.

The past two weeks also featured major economic announcements from Minister of Finance Nirmala Sitharaman and Minister of Commerce Piyush Goyal. On August 23, Minister Sitharaman launched a sweeping set of reforms designed to boost the Indian economy, including measures to stimulate foreign investment and re-capitalize banks to jump-start lending. A week later, the Finance Minister unveiled plans to merge multiple major national banks and provide a much-needed infusion of capital. (See FM Sitharaman’s full presentation)

While implementation is critical, these measures – in addition to the announcement by Minister Goyal of new openings for FDI in mining, contract manufacturing, single-source retail and digital media – represent a positive step towards the reforms India will need to attract new investment and supply chains on the move. The Government of India also received a windfall in the form of stronger-than-expected 2019 dividend from the Reserve Bank of India, which will provide $24 billion in funds that could plug a revenue shortfall in the budget.

Economic Update & USIBC Advocacy
On August 23, Finance Minister Sitharaman announced a series of reforms intended to stimulate the economy. The measures included, among others, changes in the surcharge on FPI investments, additional infusion of capital into public banks, exemptions for the sale of cars manufactured under older emission standards, and the establishment of credit enhancements for infrastructure and housing projects.

The FM noted the measures would be the first in a series of reforms that would be announced in the upcoming weeks to stimulate the economy. Subsequently, on September 3, Minister of Commerce Piyush Goyal announced that the GOI would raise FDI allowed in Insurance Intermediation to 100%. This reflects the announcement made by FM Sitharaman in the budget submitted by the new Modi Government immediately after the election. USIBC has advocated in support of such a move and commends the Government of India for its efforts to improve insurance penetration and distribution to Indian consumers.

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Check out Foreign Policy’s new weekly South Asia Brief, which provides news and analysis from the world’s fastest-growing region, with an eye to business and technology. Written by Foreign Policy managing editor Ravi Agrawal and deputy editor Kathryn Salam.

August 26 – U.S. – India Financial Services Regulatory Dialogue
The U.S. Department of Treasury and the Indian Ministry of Finance held the U.S. – India Financial Services Regulatory Dialogue on August 26 in Washington, DC. USIBC’s Financial Services Committee briefed Treasury officials ahead of the dialogue on the key issues and priorities of U.S. companies operating in India.
Topics included issues in insurance, capital markets, digital payments (fintech), banking, and the Indian credit market. USIBC members will join a readout from Treasury on the results of the dialogue.