US-India Trade Tensions Rise as Modi Plans Tariff Cuts Ahead of Trump Meeting
Washington and New Delhi are gearing up for crucial trade negotiations as Indian Prime Minister Narendra Modi prepares for a visit to the United States. US President Donald Trump’s top economic adviser, Kevin Hassett, has criticized India’s high tariffs, calling them a barrier to American exports. Trump, who has previously labeled India a “big abuser” in trade, is expected to impose new 25% tariffs on steel and aluminum imports, alongside reciprocal tariff measures. In response, India is reportedly considering tariff reductions across multiple sectors, including electronics, medical equipment, and chemicals, to foster fairer trade relations. Additionally, India plans to ramp up imports of US energy products, such as liquefied natural gas (LNG), as part of efforts to balance trade with Washington.
For non-Indian companies, these developments signal potential shifts in global trade dynamics. If India lowers tariffs, foreign businesses—particularly American exporters—may find greater market access in key sectors. Simultaneously, Trump’s push for reciprocal tariffs could disrupt supply chains, impacting companies reliant on US-India trade. With India’s average tariff rate significantly higher than that of the US, any reductions could open new opportunities for international firms while reshaping global commerce.
India’s high tariffs a barrier to imports: Trump’s top economic adviser
Editor’s Note: US-India trade tensions are escalating as Indian Prime Minister Modi plans tariff cuts ahead of a meeting with President Trump, who has criticized India’s high tariffs. In response, India is considering reducing tariffs on sectors like electronics, medical equipment, and chemicals, while increasing imports of US energy products. These moves could shift global trade dynamics, offering greater market access for foreign businesses, particularly American exporters.
Gujarat to Open First Overseas Office in Taiwan to Boost Semiconductor Investments
In a strategic move to strengthen its position in the global semiconductor industry, the Gujarat government plans to establish its first international office in Taipei, Taiwan. The Gujarat Desk in Taipei City will serve as a hub for attracting fresh investments from Taiwanese and global semiconductor firms. A senior official highlighted that Gujarat has already made significant progress in securing commitments from key players in the sector. By setting up this overseas office, the state aims to facilitate smoother business operations, providing language assistance and operational support to companies interested in investing in Gujarat. The initiative marks Gujarat’s first-ever government presence outside India, signaling its ambition to become a global technology and semiconductor hub.
For non-Indian companies, this development presents new opportunities for collaboration and market entry in India’s growing semiconductor ecosystem. With Taiwan being a global leader in chip manufacturing, Gujarat’s move to set up a direct investment facilitation center in Taipei could ease regulatory processes and enhance business-friendly conditions. The initiative also reflects India’s broader push to establish itself as a key player in global tech supply chains, making it an attractive destination for semiconductor and electronics firms worldwide.
Editor’s Note: Gujarat is opening its first overseas office in Taipei, Taiwan, to attract semiconductor investments and enhance business operations for global firms. The new Gujarat Desk will provide support and facilitate smoother investments in the state’s growing semiconductor sector. This move aims to strengthen Gujarat’s position as a global tech hub and aligns with India’s broader push to become a key player in global semiconductor supply chains.
India Offers Global Cooperation in Standardisation to Boost Trade
New Delhi is strengthening its role in international trade by offering cooperation in standardisation to interested countries, Consumer Affairs Secretary Nidhi Khare announced on Monday. Speaking at a high-level roundtable hosted by the Bureau of Indian Standards (BIS), Khare emphasized the need to harmonize global standards to improve trade and quality infrastructure. The event, attended by representatives from over 25 African and Latin American nations, focused on fostering collaboration in setting standards that ensure product quality, safety, and seamless cross-border trade. BIS Director General Pramod Kumar Tiwari highlighted the organization’s efforts in creating a robust standardisation framework that aligns with international best practices.
For non-Indian companies, this initiative signals greater ease of doing business with India and potential alignment of Indian standards with global benchmarks. Harmonisation of standards can reduce regulatory hurdles, making it easier for foreign firms to export to or manufacture in India. With BIS playing a key role in shaping trade policies, companies operating in sectors such as manufacturing, consumer goods, and technology may find improved market access and streamlined compliance processes in the Indian market.
Editor’s Note: India is offering global cooperation in standardization to improve trade and quality infrastructure, emphasizing the need for harmonized global standards. The initiative, led by the Bureau of Indian Standards, aims to align Indian standards with international practices, easing cross-border trade and business. Taiwanese companies, in particular, may benefit from smoother standardization processes when doing business with India.
Sam Altman Visits India Amid AI Race, OpenAI Eyes Deeper Collaboration
As global competition in artificial intelligence intensifies, OpenAI CEO Sam Altman is visiting India, marking his first trip since 2023 when he met Prime Minister Narendra Modi. His visit follows the recent rise of China’s low-cost DeepSeek AI, which outpaced ChatGPT in popularity on Apple’s US App Store. In response, OpenAI launched o3-mini, its most cost-efficient reasoning model, along with a ‘Deep Research’ tool to enhance ChatGPT’s ability to parse large-scale online data. India, OpenAI’s second-largest market, has seen a threefold increase in users over the past year. During his visit, Altman met Union Minister for Electronics and IT Ashwini Vaishnaw to discuss India’s AI strategy, including the development of a full AI stack—covering GPUs, models, and applications. Vaishnaw stressed India’s potential to create low-cost AI models, similar to its achievements in space technology.
For non-Indian companies, Altman’s visit signals India’s growing role in the global AI landscape and potential opportunities for AI-driven collaborations. With India launching its IndiaAI Mission and pushing for cost-effective AI models, global tech firms may find new partnerships, research prospects, and market expansion opportunities. OpenAI’s willingness to integrate with India’s AI agenda also suggests a shift in AI development, where emerging markets could play a crucial role in shaping future innovations.
Editor’s Note: OpenAI CEO Sam Altman is visiting India to explore deeper collaboration on AI, following India’s rapid growth in AI adoption and OpenAI’s increasing user base. His discussions with Indian officials highlight the country’s potential to create cost-effective AI models and its growing role in shaping the future of AI innovation.
India Unveils ₹10,000 Crore Fund to Boost High-Tech Startups
The Indian government has announced a new ₹10,000 crore Fund of Funds Scheme (FFS) to support startups in manufacturing and high-technology sectors, requiring long-term capital investment. Unlike the previous FFS launched in 2016, this initiative aims to provide extended funding options beyond equity infusion, with potential tenures of 14–15 years to accommodate high-tech ventures with longer gestation periods. Amardeep Singh Bhatia, Secretary at the Department for Promotion of Industry and Internal Trade (DPIIT), emphasized that this scheme will not be a continuation of the first FFS but will offer new funding mechanisms, including debt options. The government is also considering a dedicated FFS for deep-tech startups to finance disruptive innovations requiring patient capital. The initiative is expected to significantly scale up investment mobilization, aiming for 20x fund generation compared to the 10x achieved by the first FFS.
For non-Indian companies, the expansion of India’s startup funding ecosystem presents new investment and partnership opportunities, particularly in high-tech industries. With Alternative Investment Funds (AIFs) playing a key role in mobilizing capital, global investors may find increased entry points into India’s growing startup landscape. The government’s emphasis on long-term funding and regulatory reforms, such as the Jan Vishwas Bill 2.0, signals an evolving business-friendly environment, potentially making India a more attractive destination for foreign venture capitalists and deep-tech innovators.
Editor’s Note: India has launched a ₹10,000 crore Fund of Funds Scheme (FFS) to support high-tech startups, offering extended funding options, including debt, for ventures with longer gestation periods. The new scheme, which differs from the 2016 FFS, aims to significantly increase investment mobilization, targeting 20x fund generation. This initiative presents new opportunities for global investors and companies to partner with India’s growing startup ecosystem, particularly in deep-tech industries.
India’s Solar Cell Capacity to Reach 55 GW by 2027, Boosting Self-Reliance
India’s solar cell manufacturing capacity is set to surge fivefold to 50–55 GW by fiscal 2027, up from 10 GW at the end of fiscal 2024, driven by government initiatives like “Make in India,” according to Crisil Ratings. This expansion, requiring an investment of ₹28,000–30,000 crore, will be largely funded through a 70:30 debt-equity mix. While India’s solar module production capacity has already reached 60 GW, cutting import dependence, cell imports—mostly from China—still account for 80% of the country’s demand. With an expected solar capacity addition of 60–65 GW by 2027, boosting domestic cell production will be critical for supply chain resilience. However, Indian-made solar cells are currently 80–90% costlier than imports due to lower economies of scale and aggressive pricing by China, making sustained policy support essential for competitiveness.
For non-Indian companies, India’s rapid expansion in solar manufacturing presents opportunities for collaboration, investment, and technology partnerships. As the country moves towards greater self-reliance, suppliers of advanced manufacturing equipment, renewable energy firms, and investors in clean energy infrastructure may find new business prospects. Additionally, global shifts in trade policies, particularly US restrictions on Chinese solar imports, could influence India’s role in the global renewable energy supply chain, making it a key player to watch in the evolving market.
Editor’s Note: India’s solar cell manufacturing capacity is set to grow fivefold to 50-55 GW by 2027, driven by government initiatives like “Make in India.” This expansion, with an investment of ₹28,000–30,000 crore, aims to reduce reliance on solar cell imports, particularly from China, and boost supply chain resilience. Non-Indian companies may find opportunities for collaboration and investment in India’s growing solar manufacturing sector, especially as global shifts in trade policies could strengthen India’s position in the renewable energy market.