India Must Tackle Trade Surplus with the US
As the US focuses on reciprocal trade under President Trump, India must safeguard its economic interests. Hiren Ved from Alchemy Capital Management suggests that India can reduce its $36 billion trade surplus with the US by importing more defense equipment and oil. In 2024, India imported 232 million tonnes of crude oil, with 38% from Russia, a significant rise due to post-Ukraine war sanctions. To balance trade, India could restore US oil imports to 9%, adding $7.6 billion. India’s diplomatic approach has been mature, opting for engagement rather than confrontation, as seen in recent tariff cuts on US goods while negotiating a potential trade deal.
