Unlocking Stronger US-India Economic Ties: The Essential Role of a Balanced and Transparent Trade Environment, Says USIBC – The Statesman

Creating a fair and open trade environment is crucial for strengthening economic ties between the US and India. The US-India Business Council (USIBC) highlights the need for India to take bold steps to overcome obstacles and create a more stable policy environment. This will help build investor confidence and support long-term partnerships.

India, now the fifth-largest economy in the world, plays a vital role in the Indo-Pacific region. Ambassador Atul Keshap, President of USIBC, emphasizes that India’s ongoing economic reforms are key to enhancing trade with the US and unlocking new opportunities for growth.

The USIBC has expressed its support for India’s Union Budget for 2025-26, which focuses on important areas like agriculture, small and medium enterprises (MSMEs), and exports. Keshap noted that this budget reinforces India’s position as a dynamic participant in the global market.

While the budget sets a vision for resilience and competitiveness, deeper economic reforms are necessary. Keshap pointed out that foreign direct investment (FDI) is steady but hasn’t significantly increased, and businesses still face complicated regulations. He calls for ambitious reforms in taxation and business processes to boost India’s global standing and attract more investment.

The USIBC supports forming a high-level committee to advance regulatory reforms but stresses the urgency of addressing regulations that hinder business growth. A tax cut for the middle class is a positive move to encourage consumption and investment.

India’s recognition of critical minerals as a strategic asset is a step forward, especially with the launch of a National Critical Minerals Mission and a budget allocation of Rs 450 crore for the next financial year. However, more significant actions are necessary to establish a self-reliant supply chain.

USIBC commends India’s commitment to energy security, particularly the announcement of a Nuclear Energy Mission for Small Modular Reactors (SMRs), supported by a budget of Rs 20,000 crore. The success of this initiative will depend on clearer regulatory approvals and a roadmap for private sector involvement.

The creation of a geospatial mission aligns with India’s strengths and offers potential for collaboration with the US, which excels in geospatial data. Additionally, raising foreign direct investment limits in the insurance sector from 74% to 100% is promising, but a review of the conditions around these investments could enhance interest from foreign investors.

USIBC is actively working with stakeholders to identify challenges in the US-India trade corridor. Their goal is to provide recommendations that will enhance trade flows between the two nations.