BY MANOJ KUMAR AND SHIVANGI ACHARYA
NEW DELHI- Indian industry and trade experts see an opportunity to expand business with the US after Prime Minister Narendra Modi met President Donald Trump, despite uncertainties over reciprocal tariffs and thanks to steps taken in the past few years.
India and the US agreed on Thursday to resume talks to clinch a trade deal later this year, a proposal that did not bear fruit during Trump’s first term, with a goal of more than doubling bilateral trade to $500 billion this decade. India has promised to buy more US defense, energy and other products.
New Delhi has in the past largely dithered on trade deals fearing an onslaught of imports that could hurt domestic producers, but Indian companies are much more competitive now, partly due to government incentives like corporate tax cuts and manufacturers’ own initiatives to step up quality and widen their global distribution network, industry leaders said.
“Absolutely, to resume talks to clinch a trade deal later this year,” said Ajay Sahai, director general at the Federation of India Export Organizations (FIEO), representing more than 37,000 exporters. “The economy has become more competitive in last four years.”
India’s manufacturers in areas including auto components, garments, electronics and jewelry have moved to high-quality products and expanded distribution in North America, as US companies looked at alternatives to China in the past few years, he said.
In the past few years, the government has rolled out billions of dollars in corporate tax cuts and other incentives for domestic manufacturers to enhance their competitiveness. It has also invested in roads and ports, bringing down costs for companies.
