Semiconductor, Manufacturing, Global Capability… India can move ahead on mega deal with Trump 2.0 government

New Delhi: There are preparations for big agreements between India and America. After Donald Trump takes oath as US President for the second time on January 20, 2025, the Modi government can sign big deals in sectors like semiconductor, manufacturing and Global Capability Centre. This will be in line with the spirit of ‘Make in India-Make for the World’. Experts believe that this will create jobs in India, transfer technology and also give a boost to American businesses. After the Covid pandemic and the souring of US-China relations, many American companies have set up their factories in India. But experts say that there are more possibilities in the construction sector here. A senior expert on India-US trade relations said that India should try to finalize some big deals in the initial phase of Trump 2.0. he/she said that this would be the right time considering the good chemistry between Prime Minister Narendra Modi and Donald Trump.

Pradeep Mehta, General Secretary, Consumer Unity and Trust Society (CUTS) expressed his/her views on India-US relations. he/she said the focus should be on India-US free trade agreement. Mehta talked about taking advantage of America’s strength in the manufacturing sector. he/she said that with this America will be able to open Center of Excellence and Global Capability Center in India.

What did the experts suggest?

Mehta suggested that Prime Minister Narendra Modi himself should send the message that India is not a protectionist country that imposes high tariffs on American products. In 2020, Trump attacked India over high tariffs on imported motorcycles, especially Harley-Davidson. The then President had said that India probably has the highest tariffs in the world and Harley-Davidson has to pay huge tariffs in India. he/she first mentioned the issue in his/her address to the US Congress in March 2017.

Will India be harmed by ‘America First’ policy?

Trump becoming the President of America again is creating problems for India. There may be higher taxes on goods going from India, especially on vehicles, clothes and medicines. This may be because Trump believes in the ‘America First’ policy. But, the good news is that Trump also makes compromises. India is talking to Trump’s team to understand his/her economic policies and find a way out.