In a candid interview, Atman Trivedi, a seasoned expert with deep roots in US-India commerce policy, describes the fresh India-US trade framework as a game-changer. Once a senior director at the US Commerce Department, Trivedi now partners with DGA-Albright Stonebridge Group. He credits the deal with propelling exports, fortifying supply chains, and injecting momentum into the strategic alliance.
instrumental in launching the US-India Strategic and Commercial Dialogue, Trivedi views this interim pact as a business boon. It carves out new market spaces amid global trade turbulence. ‘A definite positive shift,’ he affirmed. ‘Expect robust export growth bilaterally, with SMEs standing to gain the most in both economies.’
Delving into details, the agreement eases barriers for US industrial products entering India and opens US doors to priority Indian industries. This dovetails with India’s push for manufacturing self-reliance, creating a win-win where US exports flourish alongside Indian innovation.
Anticipating a surge in Indian goods to the US—its top export market—Trivedi said it will amplify Make in India worldwide. For the US, India’s tariff cuts dismantle decades-old hurdles in a market of 1.4 billion consumers. ‘High average tariffs are easing, simplifying sales for American businesses of all stripes,’ he explained.
India scores big too, especially in textiles, gems, jewelry, and leather, with tariff slashes from 50% to 18% on critical exports and zero duties in select industrial categories. This positions India advantageously over rivals like Vietnam and Bangladesh facing steeper US levies.
The pact promotes supply chain resilience by lessening India’s dependence on hostile suppliers. Major procurement pledges feature prominently: India’s $500 billion commitment over five years targets defense, energy, and more, including Boeing aircraft. Shared Indo-Pacific views underpin increased defense and energy buys.
Yet, Trivedi tempered optimism, noting the procurement goal’s scale—post-2024 imports hit $87 billion, demanding accelerated growth. Persistent non-tariff issues, from regulatory hurdles to localization rules, challenge US investors. H-1B visa debates add complexity to immigration dynamics, potentially spilling into trade discussions.
Overall, this framework heralds a new era of deepened economic interdependence, promising prosperity if hurdles are navigated wisely.