India Gains as US Firms Quietly De-Risk from China: USISPF

India gains as US firms de-risk China: USISPF

Washington, June 30

"A classic example is Apple, which is now making most of the iPhone 17 and planning for the 18 in India," Aghi said while opening the ninth USISPF Leadership Summit in Washington.

Aghi said the broader India-US economic relationship continued to strengthen despite public attention on trade negotiations, expressing confidence that a bilateral trade agreement would further accelerate commercial ties.

"If you recall, the Prime Minister and the president agreed to take the trade to $500 billion by 2030. And what we are seeing is the trade between the two countries is going up and up regardless of whether there is a trade deal or not. But I think with the trade deal, you'll see much more acceleration," he said.

He pointed to growing collaboration in critical and emerging technologies, saying both countries were deepening cooperation in sectors ranging from critical minerals to advanced technology.

"We also see tremendous partnership taking place on the technology side between the two countries. We just had a back-to-silicon meeting. We talk about critical minerals between the two countries as to how we collaborate and move forward," Aghi said.

He said India had also become an increasingly important hub for Global Capability Centres (GCCs), reflecting the confidence American companies had in the country's skilled workforce.

"We are also seeing effort put in by the US companies opening up more and more GCCs or Global Capability Centres in India. India now has around 2,800 Global Capability Centres and roughly 60 per cent are US companies leveraging the intellectual talent in India," Aghi said.

Despite concerns surrounding tariffs and trade negotiations, Aghi said the underlying trajectory of the relationship remained firmly positive.

"We can hear about all the noise, but undercurrents are very strong moving in the positive direction," he said.

Aghi also highlighted the growing influence of the Indian-American community in strengthening bilateral ties.

"When you look at the 5 million Indian Americans in the US, they're making roughly one and a half per cent of the population by generating almost 6 per cent of GDP in every aspect. They are taking the lead from technology... and other aspects of the US corporate environment," he said.

USISPF Chairman John T. Chambers said the India-US partnership had reached a point where both countries should think beyond incremental gains and pursue transformational cooperation.

"It can't be trade over here, defence over here, semiconductors over here. It's gotta be how do we think out of box," Chambers said, arguing that closer collaboration could generate significant economic growth for both countries.

Chambers said artificial intelligence would be central to the next phase of the partnership.

"AI will be at the heart of that. AI is the technology. It allows you to change everything," he said, urging participants to identify ways to deepen cooperation between the two democracies.

The summit brought together senior policymakers, diplomats and business leaders from both countries, including India's Ambassador to the United States, Vinay Mohan Kwatra, US Ambassador to India, Sergio Gor, members of the US Congress, and executives from leading American and Indian companies.

Founded in 2017, the US-India Strategic Partnership Forum has become one of the leading platforms advancing commercial and strategic engagement between India and the United States. It regularly convenes government officials, industry leaders, and policy experts to promote cooperation across sectors, including trade, defence, energy, technology, and innovation.

— IANS