Amid rising U.S.-China trade tensions, India is strategically positioning itself to attract investments and businesses seeking to diversify their supply chains away from China.

In the fiscal year 2023/24, two-way trade between India and the U.S. surpassed $118 billion, with India enjoying a trade surplus of $32 billion, indicating robust economic ties.

To safeguard its manufacturers from potential U.S. tariff increases, particularly those targeting imports from China, India is exploring ways to strengthen its economic relationship with the U.S.

In response to U.S. concerns about trade imbalances, India is open to increasing imports of energy products like liquefied natural gas (LNG) and defense equipment while maintaining its independent trade policies.

The Indian government, along with industry advocates, is pushing for a broader trade and investment pact with the U.S. to integrate Indian manufacturers into global supply chains while protecting national interests.

Inspired by Apple Inc.'s decision to manufacture iPhones in India, the country is targeting greater U.S. investments by offering incentives, streamlined regulatory processes, and affordable land.

India aims to enhance exports in sectors where it has a competitive edge, such as pharmaceuticals, garments, footwear, and engineering goods, particularly in comparison to China.

The United States has emerged as India's third-largest investor, with direct investments totaling $65 billion from 2000 to 2023, highlighting the growing economic relationship between the two nations.

Advisers to the Indian government have suggested selective tariff reductions on items like pork and Harley-Davidson motorcycles as a means to negotiate broader concessions, including increased visas for Indian professionals.

Progress on co-producing General Electric's fighter jet engines in India has been slow, but there are hopes that the 2023 defense industrial cooperation roadmap will facilitate technology sharing and co-production.

To align with Trump's 'America First' policy, India is prepared to offer incentives such as tax cuts and land access in states like Andhra Pradesh, Gujarat, and Tamil Nadu, particularly for industries like semiconductors and electronics.

As India prepares for potential trade talks with the United States, the focus will be on boosting investments and exports, particularly following the election of President-elect Donald Trump.