USISPF President Highlights Strong India-US Ties with $200 Billion Trade
Emphasizing the strong foundation of the India-US relationship, Mukesh Aghi, President and CEO of the US-India Strategic Partnership Forum (USISPF), highlighted that bilateral trade has surpassed the USD 200 billion mark. Aghi stressed the importance of joint initiatives in sectors like engines, quantum computing, artificial intelligence (AI), cybersecurity, and space collaborations. "The relationship between India and the US is very strong. From a trade perspective, we already crossed USD 200 billion in trade. We are seeing a lot of effort happening, engines, on quantum computing, AI, cyber security, partnerships in space", he said.
In reference to the India-United States Trade Policy Forum, Aghi observed a transformation in its nature and stance, steering away from contentious matters. He mentioned that current deliberations prioritize enhancing trade, eliminating obstacles, and investigating avenues to reduce tariffs, rather than becoming entangled in specific trade disputes.
"The character and posture of trade policy forum has changed. It is no more contentious... We had six cases between the two countries in WTO, and they went away. You have political limitations on the US side because it can't do a FTA. So there were discussions exploring how to improve trade, remove impediments between the two countries, how do you explore lowering the tariffs. The discussion was what are the possibilities? Rather than getting stuck on raspberries and strawberries between the two countries", he added.
Additionally, when questioned about the possibility of a Free Trade Agreement (FTA) between the two nations, Aghi highlighted the absence of FTAs in the current US administration's agenda and cited political constraints in the United States. Furthermore, in addressing the India-US Supply Chain momentum, President Aghi of USISPF underscored the relocation of production to India, pointing out that an affluent Indian population of 100 million possesses significant purchasing power, creating a market opportunity for these companies.
"It is in the interest of the US companies to protect its assets and supply chain. What we are seeing is increased harassment of US companies in China. They want to be able to supply goods that are efficient and effective, so India becomes pivotal for their strategy. Gradually, companies are moving production into India. It's not just about the supply chain, it's also about trying to leverage the growing Indian market 100 million people are affluent Indians. Their purchasing power also creates a market opportunity for these companies. So it is also supply chain and market opportunity which attracts these companies", he said.
Furthermore, underscoring the Vibrant Gujarat Summit that happened recently, Aghi emphasized that it should be called Vibrant India and not Vibrant Gujarat anymore. Noting that the US companies are excited about India, the market opportunity and also the de-risking supply chain from China, he said, "So for us, Vibrant Gujarat was very important. You don't have to call it vibrant Gujarat anymore. You have to call it Vibrant India because you have over 100,000 people participating and 18 political leaderships coming down to the event".
