India may pursue big business deals early in Trump 2.0 government

New Delhi: The Modi government could be exploring to conclude some big deals across sectors including semiconductors, core manufacturing and global capability centres in India with the USA following President-elect Donald Trump's formal inauguration on January 20, 2025 in the spirit of 'Make in India-Make for the World'.

While few US firms set up their units in India for domestic market as well as for exports abroad following Covid and deterioration of US-China ties, there is a bigger appetite and scope for manufacturing sector here that would create jobs, help transfer technology and also boost US businesses, according to experts who track the area.

A senior expert who deals with the dynamics of India-USA trade and business ties told ET that it would be prudent for New Delhi to explore and conclude some big- ticket items with the USA in the early part of Trump 2.0 in the backdrop of the US-President elect's chemistry with PM Narendra Modi.


While there could a focus on proposed Indo-US FTA, the emphasis should be on harnessing USA strength in the manufacturing sector that could lead to US opening up centres of excellence and global capability centres and export products from here to third countries, Pradeep Mehta, Secretary General of the CUTS International, a leading public policy body told ET. One of CUTS global centres is based in the USA.

Mehta suggested that PM Narendra Modi himself could send out a message that India is not a protectionist country that charges higher tariffs to blunt any suggestions that refer to higher tariffs being charged by India on US products.

In 2020, Trump had attacked India on the high tariffs on imported motorcycles, especially Harley-Davidson. The former President had said that India probably has the highest tariffs in the world and that Harley-Davidson has to pay "tremendous" tariffs in India. He made the very first reference to the issue in his address to the US Congress in March 2017.

There are fears that under Trump 2.0 Indian exporters may face high customs duties for goods like automobiles, textiles and pharmaceuticals if the new US administration decides to pursue the 'America First' agenda. However, sources hinted that as Trump is a pragmatic and transactional politician, India can work out a deal with him.

India has been in touch with key members of the Trump team to develop a better understanding of Trump's economic policies.