US Assistant Secretary of Commerce David Vogel called for Indian investments in sectors such as critical minerals, pharmaceuticals and automobiles in the US, adding that both countries are not doing enough in the area of trade and investment.
In an exclusive interview with HT during the SelectUSA Investment Summit, Vogel, who also serves as director general of the US Foreign Trade Service, added that although the tariffs have created significant disruption in economic relations, investment commitments to the US from countries around the world have continued. The US Ambassador to India, Sergio Gore, announced that Indian companies announced US investment commitments worth $1.1 billion during the summit.
Edited excerpts:
Q: Both India and America have concerns about overproduction from China. Can I ask you what American companies and Indian companies can do together to deal with this challenge?
A. We are looking for as many allies as possible regarding trade. So we want to work together. India has the fifth largest economy in the world. It is number one in terms of population. We are long-standing allies, and we want to strengthen our relationship with India. This is a big priority, because there are a lot of opportunities to be fair. We are not doing enough with India in terms of capabilities, so I think that is the focus. To the extent that this has benefits compared to our other economic competitors, this is a huge plus.
But we are only focused on growing the pie and growing US-India trade.
Q: Are there any specific industries that you are trying to attract the interest of Indian companies when it comes to investing in the US?
A. We are somewhat agnostic regarding the industry. We have allowed corporations and countries to influence this. We certainly have certain priorities in terms of the overall sectors that we’re looking to rebuild in America. Critical minerals are one. Semiconductors are another thing. Medicines and cars as well. These are generally strategic sectors for us. But we like the fact that Indian pharmaceutical companies are looking to invest in America, including the announcements made here at the SelectUSA Summit. This has historically been a strong suit for India. So we welcome that.
Question: What exactly is your offer about coming to the United States and establishing a presence there?
A. The pitch is that it’s a golden age in America. There’s a kind of remanufacturing renaissance happening in America. People realize that it has always been the first destination for foreign direct investment. But today, even more so, under President Trump and Secretary Lutnick, we have seen a record amount of trillions of dollars in investment commitments from abroad. Part of that is due to the business deals we’ve been negotiating. But even apart from trade agreements, we have seen huge investment commitments. The main reason is that America is the most hospitable place for foreign business and investment under President Trump. We have less regulation and have a proper tax system. We have the rule of law, predictability, stable capital markets and the strongest capital markets in the world. So it is very attractive.
Q: How do you see the India-US trade agreement opening up opportunities to bring more investments into the US?
A. Well, it depends on the agreement. Some of them have explicit investment commitments as part of the deal. For example, Japan, Korea and Taiwan are three of the many agreements that include clear investment commitments. India is still kind of a work in progress, from what I understand.
I think there was an agreement in principle, and it is being reconsidered. But investment commitments are a very important element of these trade agreements, because they demonstrate that closer economic ties lead to closer national security ties over time, bringing countries together. Economic interdependence is important, and this is the message the president is trying to send.
Q: Indian companies have concerns about the unpredictability of US tariff policies, especially after the US Supreme Court’s decision to void reciprocal tariffs imposed by President Trump. How do you deal with this uncertainty?
A. From our perspective, we don’t think there’s a lot of uncertainty. Honestly, when the tariffs were first announced, there was definitely a lot of turmoil, because it was a big policy change, but then things settled down over the next couple of months, and things became pretty predictable. Countries are beginning to realize that there is a very fixed tariff rate that can be applied. The Supreme Court decision put that into question somewhat, but then we immediately came out with a new tariff regime with different powers and essentially settled at a similar rate. A number of countries have come out and said, despite the Supreme Court’s ruling, that they have reiterated their commitment to the trade agreements reached. I think they do this because they see these agreements as mutually beneficial economically. It’s not a one-way street. It’s about mutual benefit. More open trade between the two countries will be more beneficial to both countries. And I think that’s kind of the big misunderstanding here is that it’s all about America. This is not limited to the interests of the Americans alone. It’s for both countries.
