The US Treasury Secretary Janet Yellen has said India could play a major role in the emerging U.S. strategy of “friendshoring,” which would be mutually beneficial for the economies of both countries.
During a visit to India stressed that the United States believes in economic integration. Both countries she added must keep an eye on trade disruption. Referring to China without naming it she said malicious actors can use their market positions to try to gain geopolitical leverage or disrupt trade. She also pointed out the risks of depending on a single source again in an obvious reference to Russia and China.
Yellen’s encouraging words about India would immediately benefit its apparel and textile sector besides many other industrial sectors. She said the US is diversifying away from countries that present a geopolitical security risk to the US supply lines.
Despite these encouraging remarks India has not responded positively to US overtures as it has fundamental differences on some key trade issues. India wants reinstatement of the Generalized System of Preferences or makes other concessions on tariffs, but the US has refused to comply with US-Indian desire. However, trade experts point out that in order to align India with the US would have to give concessions to India. The Indian government wants an immediate zero rating on textile products that if granted would annoy other major US trading partners.
