The US and India have been involved in a trade war, with the US imposing tariffs on Indian products. The Modi administration has been taking efforts to dampen the effect of these tariffs on the economy of India.
In 2019, the US revoked India's status as a beneficiary developing country under the Generalized System of Preferences (GSP) program. This move impacted the exports of India to the US, as tariffs were levied on products like textiles, jewelry, and chemicals.
In response to the US tariffs, India has been imposing retaliatory tariffs on US products, such as agricultural products, steel, and aluminum. The Indian government has also been pursuing diplomatic means to settle the trade dispute.
One of the most contentious areas is the question of market access for US medical devices and dairy products in India. The US has been advocating increased access to India's dairy market, but India has been opposing it, raising fears about the effect on its domestic dairy sector.
The Modi administration has been making efforts to improve India's exports and lower its trade deficit with America. These efforts involve raising exports of Indian products like clothing, medicines, and engineering goods and encouraging investment in areas like renewable energy and infrastructure.
The Indian government has also been seeking alternative markets for its exports, such as Southeast Asian countries, Africa, and Latin America. This diversification is intended to cut India's reliance on the US market and cushion the effect of the trade dispute.
In general, the US-India trade dispute is a complicated and controversial topic, with both nations looking to safeguard their economic interests. There are, however, the Modi government's attempts to diversify Indian exports and use diplomatic channels in an effort to end the dispute that provide some optimism for the resolution of the trade tensions between the nations.