Other Publications
America and India’s Green Trade Opportunity, (How to Shore Up Flagging Economic Relations)
September 2024 | International Cooperation
Suggested citation: Sutton, Trevor, Ghosh, Arunabha. 2024. America and India’s Green Trade Opportunity: How to Shore Up Flagging Economic Relations.
Overview
The evolving relationship between India and the United States has transitioned from historical estrangement to a partnership marked by significant cooperation, particularly since the end of the Cold War and India's economic liberalization in 1991. Despite a strong strategic alliance, particularly in security and technology, trade relations have lagged, characterized by high tariffs and trade barriers that hinder deeper economic ties. Both nations have recently recognized the need to align their trade policies, particularly in response to shared concerns over China's economic dominance. This piece in the Foreign Affairs argues that there is potential for the U.S. and India to collaborate on green trade—focused on clean energy and sustainable practices—as a critical area for future growth, promising to enhance both countries' economic security while addressing climate change challenges.
Key Highlights
- Historical Transformation-Post cold war changes:Since the end of the Cold War and India’s economic liberalization in 1991, the U.S.-India relationship has significantly evolved, marked by milestones such as the civil nuclear deal in 2005 and participation in the Quadrilateral Security Dialogue. This transformation has laid the groundwork for deeper cooperation.
- Current Trade Relationship: Despite political improvements, trade between the U.S. and India remains underdeveloped due to persistent trade barriers and tariffs. This highlights a key area where further progress is needed to fully realize the economic potential of their strategic partnership.
- Opportunities for Collaboration: There is substantial potential for the U.S. and India to collaborate in green trade, focusing on clean energy and sustainable technologies. This area of cooperation promises to enhance economic growth, energy security, and environmental goals, and could serve as a model for international collaboration on climate change
"India has set out to do the near impossible: simultaneously provide energy access to hundreds of millions of people, clean up one of the world’s largest energy systems, and become a green industrial powerhouse."
