India's Tariff Challenge

Outgoing US Ambassador Eric Garcetti emphasized the necessity for India to lower its high tariffs to remain competitive against Southeast Asian markets. This move is crucial as the US under President Trump threatens to impose universal tariffs, including hefty duties on Chinese imports.

Garcetti highlighted the importance of improving India's domestic business environment to attract investment, stating that American companies have alternatives like Southeast Asia and Mexico for their international exports.

Strengthening US-India Relations

Despite trade tensions, Garcetti is optimistic about the future of US-India relations, citing the positive influence of key figures in the incoming administration. He envisions a relationship that is indispensable on the global stage.

Under President Biden's administration, there has been a push for deeper cooperation in defense, technology sharing, and business investment in India. Companies like Apple and Micron Technology are increasing their presence in India, diversifying away from China.

Challenges and Opportunities

India's 'Make In India' campaign has seen some success, but the manufacturing sector's contribution to GDP has declined. The country faces stiff competition from Asian rivals like Vietnam, known for their business-friendly environments.

A recent controversy involving allegations of an Indian government agent's involvement in a foiled assassination plot in the US has been a sticking point. Garcetti views the Indian committee's recommendation for legal action as a positive step but stresses the need for systemic reform and accountability.