While tariffs remain a challenge, India maintains a strong position in key exports of services, pharmaceuticals and energy, and these challenges face zero tariffs. The US-China tariff standoff opens a window for India to strengthen its footprint in areas such as clothing, electronics and manufacturing, especially high-tech manufacturing, such as Apple Eapple, which is eager to transfer additional supply chains to India’s electronics giant, Dr. Aghi conducted an exclusive interview ahead of next week’s Vance visit.
Vance visited India for the first time since taking office (which also involved private parts tours in Jaipur and Agra) as the second order demonstrated the government’s commitment to strategic partnerships and deepened economic ties after Prime Minister Modi visited Washington in February. In addition to possible meetings with the Foreign Minister and the NSA, Vance will also meet with the Prime Minister.
“His visit also sent a strong signal to domestic and international stakeholders that both countries have given this importance with a strong, future-oriented trade relationship and of course, after the elections went on and after November, the second lady originated in India, which is so positively reported, so much positively reported in that aspect, it is a big fanfare for many countries.”
Dr. Aghi noted that Vance’s visit could help address key points and accelerate consensus on controversial trade issues. “I believe both countries need to deal with tariff challenges by adopting a pragmatic, industry-specific approach. Rather than reaching broad and thorough agreements that may risk a deadlock, both countries can focus on a single sector, such as digital trade, medicines, medicines, agricultural supplies and defense technology – in situations where mutual interests are made.”
Dr. Aghi suggested that this comprehensive negotiation strategy could enable incremental progress and build trust in the next step of the BTA while addressing the sensitivity unique to the economic structure of each country. Departmental working groups can appoint non-election barriers to identify targets to identify regulatory restrictions and promote the restrictive standards of approaching approach standards. By 2030, as both sides need to pave the way through discussion.
The focus is on places where tariffs on agriculture, dairy and ICT products can be reduced. Dr. Aghi said both parties need to facilitate digital transactions and pending issues in terms of data localization and cross-border data flows, and increase market access in areas such as insurance, e-commerce and defense manufacturing, while ensuring business environment and transparency and predictability in the debate resolution mechanism.
Asked about the impact of retaliatory tariffs on the global economy, the USISPF CEO said: “Retaliatory tariffs will disrupt the supply chain we are trying to rebuild because of the pandemic, raising prices for consumers, thus creating an environment of inflation and creating the market volatility we are seeing. Therefore, due to India’s announcement of discussions with Moratoratium, and the discussion will continue.
As the U.S.-China trade war escalates and establishes protectionist barriers, the company will continue to seek China plus a strategy aimed at “reducing risks” through relocation actions, which India can take advantage of. According to Dr Aghi, businesses also want to reduce manufacturing costs, so India remains a strong and viable geographical location and partner, part of building a global value chain in the age of friends’ training.
