‘India can become key part of supply chain relationships’

NEWDELHI: The Covid-19 crisis has presented an opportunity for India to become a key part of new trusted supply chain relationships but it will have to reduce tariffs and adopt more welcoming policies for foreign players, a top US diplomat said on Wednesday.

Alice Wells, the outgoing head of the state department’s South and Central Asia bureau, said bilateral trade had totalled a record $150 billion in 2019 but the US continues to have concerns about India’s “protected market that can be difficult and sometimes not provide a level playing field for foreign companies”.

India and the US had made concerted efforts to finalise a limited trade deal ahead of President Donald Trump’s visit to the country in February but were unable to reach common ground on some issues. Before winding up the visit, Trump had held out hope for trade deal by the end of 2020.

Wells said she couldn’t predict whether the US Trade Representative and the Indian government would be able to finalise an agreement this year, but noted that the “impetus for achieving a trade deal is very much present”.