Former U.S. Ambassador to India, Kenneth Juster, has emphasized that while the relationship between the U.S. and India is set to strengthen, challenges such as potential tariff increases and a push for a Free Trade Agreement (FTA) are on the horizon. Here are the key points from his insights:

Juster noted that there is a renewed focus on enhancing economic partnerships between the two nations. This includes discussions around finalising a Free Trade Agreement, which could significantly impact bilateral trade dynamics.

He warned that tariff increases could pose challenges to this burgeoning relationship. The complexities of trade negotiations may lead to friction, particularly with the recent changes in U.S. leadership and trade policies under President Trump.

Despite these challenges, Juster remains optimistic about the strategic cooperation in defence and technology sectors. The ongoing collaborations in defence manufacturing and technology transfer are expected to deepen as both countries align their interests more closely.

The backdrop of these developments includes India's active foreign policy and its role as a significant player on the global stage, especially amidst rising geopolitical tensions involving China and Russia. The U.S.-India partnership is viewed as crucial in maintaining stability in the Indo-Pacific region.

The U.S.-India relationship is poised for growth, stakeholders should prepare for potential tariff disputes and push for comprehensive trade agreements as key issues in the near future.

Agencies