Excerpted from a longer interview with USIBC President Nisha Biswal on the U.S.-India trade and the larger bilateral relationship.
How would you characterise the current India-US dynamic in the context of a so-called global trade war?
Clearly there are increasing trade tensions between the US and India, and that shouldn’t be entirely unexpected. As the trade and investment relationship between our countries deepens, more issues will emerge that require us to create more efficient pathways for business. And the US-India relationship has grown at an incredibly rapid pace over the last five-six years, expanding from $100 billion, when I was in government during the Obama Administration, to roughly $142 billion today.
There’s much more at stake today in US-India economic relationship than ever before, but also more opportunities for industry in both countries if we can find ways to address outstanding trade challenges. For India’s growth to hit double digits, it requires significant new investment inflows – and the United States is the largest single source of India’s FDI. However, ramping investment volumes will require addressing lingering investor concerns. At the same time, Indian companies are increasingly looking for investment opportunities in the United States as they source from the US or produce their goods here. So it’s in both countries’ interest to work through the hard issues on trade and reach agreements that will build confidence in the trade relationship.
Source: India Inc.