Takshashila Policy Advisory - Time to Launch the US-India Trade Relationship into Another Orbit
In the fiscal year 2022-23, the US has emerged as India's largest trading partner. Amid the growing emphasis on strengthening supply chain resilience and reducing dependence on China, an even greater potential emerges for expanding trade between the US and India. With Prime Minister Modi's anticipated state visit to the US scheduled for June 2023, there is a promising opportunity to reinforce and enhance the economic ties between the two nations. This document sets out an ambitious agenda for increasing the bilateral trade between the two countries to $500 billion by 2030 and $1 Trillion by 2040.
To achieve the above, we recommend the following -
Enhance the existing 2+2 India-US ministerial dialogues by transitioning to a 3+3 format, incorporating trade and commerce representatives from both nations.
Capitalize on the role of states in India and the US, fostering partnerships where groups of states engage in reciprocal visits each year.
Ensure the annual convening of the Trade Policy Forum to maintain a consistent approach and follow-through on trade-related goals.
Address trade frictions by utilizing the expertise of forums like the US-India Business Council, aiming to streamline business operations and resolve challenges.
Encourage both countries' participation in plurilateral trade partnerships to enhance bilateral trade relations.
Establish specialized framework agreements to boost trade in high-technology sectors, facilitating government, industry, and academia collaboration.
Promote the exchange of people between India and the U.S.
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