India has the manufacturing base and workforce to serve as a substitute vacation spot for firms looking for to diversify away from China, US Commerce Consultant Jamieson Greer mentioned on Tuesday.
Chatting with Fox Information, Greer claimed that India has already begun lowering its purchases of Russian power and increasing financial commitments to america, at the same time as a broader commerce deal is predicted by March.
Requested whether or not India would shift away from Russian oil and commit to purchasing as much as $500 billion in U.S. power, plane, and expertise over the subsequent 5 years, Greer mentioned, “The brief reply is sure. They’ve already began winding down their purchases of Russian power merchandise. They began ramping again up purchases of American power and power from different sources.”
“We talked to them about oil from Venezuela. Earlier than 2022, the Indians did not actually procure Russian oil. It is an artifact of the Russia-Ukraine battle and the low cost they may get. They get oil from Russia, they refine and promote it to Europe. Europe and India have been underwriting Russia’s battle in Ukraine. However India is actually dedicated. They began increasing a few of their commitments with respect to purchases.”
He added that India had already begun addressing some U.S. considerations on taxation and tariffs. “They’ve taken down some digital companies tax they’d on us already, they’re shifting to deliver tariffs down. That is going to be a very necessary deal, and it should reverberate for a few years to come back.”
Greer was additionally requested whether or not India may emerge as a viable supply-chain vacation spot for American firms seeking to scale back their dependence on China.
“It may be,” he mentioned. “We all know that many firms already are going that path. We would like the provision chains right here in america, as near residence as doable…India generally is a approach station for that. They’ve a number of of us there. They’ve manufacturing capability. In fact, we need to make it possible for American manufacturing is at the start. The American employee is first. However actually to the extent we will import from different international locations, India generally is a good supply so long as it is balanced and it is honest.”
Greer’s remarks come as U.S. companies weigh geopolitical danger, supply-chain resilience, and tariff buildings in deciding the place to relocate manufacturing. Whereas Washington has mentioned it prefers to deliver provide chains nearer to residence, India is more and more being positioned as a possible different vacation spot.
