US Trade Representative (USTR) Ambassador Jamieson Greer on Tuesday said India could play a key role in global supply chains as companies look for options beyond China. He described India as a possible “way station” for American supply chains during this shift. Speaking to Fox News, Greer was asked if India could be the right place for US companies that want to move their supply chains out of China. He said India already fits that role for many firms, thanks to its manufacturing strength and large workforce.
India seen as a supply chain option beyond China: USTR
Greer said the US wants its supply chains to stay as close to home as possible, but added that such changes take time. “It can be. We know that many companies are already going in that direction. As you mentioned, we want our supply chains in the United States to be as close to home as possible. But we also know it’s a process. When you shift from globalisation to a more resilient and secure economy, you will eventually need to reallocate supply chains. India can be a way station for that,” he told Fox News.
He also stressed that American interests remain the priority, but India can still play a role. “They have a large workforce and manufacturing capacity. Of course, American manufacturing and the American worker must come first. But to the extent that we import from other countries, India can be a good source—as long as it’s balanced and fair,” Greer said.
Optimism over India-US trade commitments
Greer sounded confident about India’s role in the recently announced India-US interim trade framework. He said New Delhi is serious about its commitments and has already begun acting on them. “India is really committed,” he said, adding, “They have started expanding some of their commitments with respect to purchases. They’ve already rolled back some of the digital services tax that affected us, and they’re moving to reduce tariffs. This is going to be a really important deal, and it’s going to reverberate for many years to come.”
What the interim trade framework includes
The United States and India announced the framework for an Interim Agreement on reciprocal and mutually beneficial trade earlier this month. Both sides also doubled down on their commitment to a broader Bilateral Trade Agreement (BTA), which was launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.
Under the framework, India has agreed to eliminate or reduce tariffs on all US industrial goods. It will also lower duties on a wide range of American agricultural and food products. These include dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine, spirits, and other items.
On its part, the United States will impose a reciprocal tariff of 18% on goods coming from India. These include textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods, and certain machinery.
However, the US has said that once the Interim Agreement is successfully completed, it will remove reciprocal tariffs on select items. These include generic pharmaceuticals, gems and diamonds, and aircraft parts.
Going further India has also said it plans to buy USD 500 billion worth of American products over the next five years. These purchases will include US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal.