India stands to strengthen its position as a preferred manufacturing hub following the announcement of an interim trade agreement framework with the United States, former Niti Aayog CEO and India’s G20 Sherpa Amitabh Kant said on Saturday. He noted that deeper trade ties with Washington could draw investor interest away from rivals like Vietnam and Bangladesh as global firms reassess supply chains amid economic and geopolitical shifts.
The India–US Joint Statement issued on 6th February outlined a broad framework for advancing bilateral trade cooperation, signalling political intent rather than detailing binding commitments. The statement emphasised expanding market access, strengthening supply-chain resilience, and deepening collaboration in areas such as energy, technology, and manufacturing, while leaving key issues like tariffs, services trade, and labour mobility open for future negotiations.
In a post on X, Amitabh Kant described the India–US interim trade deal framework as a strategic opening that could strengthen India’s position in global supply chains. He said better market access and trade certainty with the US would boost India’s appeal as a manufacturing hub as companies diversify beyond Vietnam and Bangladesh, while also reinforcing Make in India and Atmanirbhar Bharat by signalling policy stability and long-term investment potential.
Kant said the framework could fast-track India’s entry into trusted global value chains at a time when geopolitical realignments are pushing companies to prioritise resilience over cost alone. He noted that India is increasingly being viewed as a dependable manufacturing partner offering both scale and policy stability.
While describing the arrangement as an interim step, Kant emphasised that its real significance lies in laying the groundwork for a comprehensive bilateral trade pact, adding that sustained momentum would be essential for translating the framework into concrete gains in exports, jobs, and technology inflows.
Industry analysts have echoed this assessment, saying that deeper trade engagement with the United States could sharpen the competitiveness of Indian exporters, particularly in sectors where regional rivals currently benefit from lower tariffs or cost advantages.
The deal framework is also expected to enhance investor confidence by reinforcing India’s commitment to open, rules-based trade. |
