India is becoming increasingly important in the global realignment of supply chains, as per former US official Nisha Biswal. Biswal, a Partner at The Asia Group and ex-US Assistant Secretary of State for South and Central Asian Affairs, highlighted a shift in business strategies amidst geopolitical and economic uncertainties. She noted significant growth in US-India trade, reaching around $212 billion without a formal trade pact.
Companies are now exploring alternatives to reduce reliance on China, with a focus on India’s market and skilled workforce. Biswal emphasized India’s economic significance due to its size and resilience. She mentioned a broadening of the US-India relationship beyond strategic aspects to include a stronger commercial dimension, with a rising emphasis on economic engagement and supply chain collaborations.
Biswal suggested a potential trade agreement between the US and India, albeit not immediate and likely to be phased. She identified energy, advanced technology, and critical minerals as key areas for enhanced cooperation. Addressing global shocks like geopolitical tensions and supply disruptions, she highlighted India’s efforts to navigate challenges while sustaining growth momentum.
Speakers at a panel emphasized the importance of domestic reforms for India’s growth trajectory. Hemang Jani, a Public Policy & Governance expert at the World Bank, stressed the need to tackle skills gaps and low workforce participation as critical growth impediments. Ashok Malik, a Partner at The Asia Group, mentioned India’s trade policy adjustments following vulnerabilities exposed by previous agreements, leading to a reevaluation of trade strategies.
Richard Rossow, a Senior Adviser at CSIS, underscored the significance of state-level reforms, citing their impact on investment decisions due to infrastructure and regulatory considerations. The discussions took place during the New India Conference in Washington, focusing on India’s economic prospects and US-India relations. India’s economic growth aligns with global supply chain transformations, positioning the country as a prime investment destination.
