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4 November 2024

India’s Ascending Role for U.S. Economic Security

Richard M. Rossow

While U.S. elections are primarily driven by domestic issues, the policy positions taken by the winner are relevant for a wide array of global partners. In the case of India, for example, the United States and India share concerns about overreliance on China as a dominant supplier of manufactured goods. Consequently, Indian firms have been ramping up investments in the United States, actions significant for both countries moving forward. The next U.S. administration should take the time to meet with international partners such as India before staking out policy positions related to domestic industrial and trade policy. Ignoring U.S. partners in the early days could have repercussions when U.S. officials engage on vital global issues later.

A deeper economic relationship with India is in the United States’ interests for several reasons. First, India is expected to continue growing faster than any other large nation in the foreseeable future, with growth expected to top 7 percent in 2024. BlackRock recently predicted that India will leap over Japan and Germany to become the world’s third-largest economy in just three years. In 2023, Goldman Sachs predicted that the Indian economy will be the world’s second-largest by 2075, at an estimated $52.5 trillion. For U.S. companies looking to grow, India’s topline numbers draw attention—even if the practicalities of doing business in India remain challenging at times.

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