India's strategic alignment with the United States in trade negotiations is gaining momentum as most Indian industries, barring agriculture, express openness to lowering import tariffs. At the News18 Rising Bharat Summit 2025, key business leaders and economists shared insightful perspectives on how tariff reductions could catalyse India’s export capabilities and economic growth.

Strong Industry Sentiment Towards Tariff Reforms

Rajiv Memani, Chairman of EY India, set the tone by asserting that Indian industries are well-positioned to negotiate and benefit from tariff cuts in trade talks with the US. According to him, “Most Indian sectors, except agriculture, are not only comfortable but optimistic about lowering tariffs,” a sentiment rooted in the growing demand for global competitiveness and expanded market access.

Memani emphasised that reducing import duties can have a multiplier effect on exports, manufacturing, and innovation, as industries seek to integrate into global value chains amid shifting geopolitical dynamics.

Redefining Global Value Chains Amid Uncertainty

A recurring theme during the session was the evolving nature of international trade, especially in light of unpredictable policies like former US President Donald Trump’s push for domestic manufacturing repatriation. Memani noted, “Few can truly decipher global tariff patterns in today’s climate,” pointing to a day-by-day recalibration of supply chains across the globe.

He further added that Artificial Intelligence (AI) is expected to increase uncertainty in decision-making, reinforcing the need for India to double down on domestic manufacturing capacity and value addition.

Strategic Opportunities in Manufacturing and FDI

Karan Singh, Chairman of Bain & Company India and APAC Sustainability Leader, echoed the sentiment, stressing that India must seize the moment to attract greater Foreign Direct Investment (FDI) and create an enabling ecosystem for global corporations. According to Singh, “Negotiating a favourable trade deal with the US could be a breakthrough for Indian manufacturing.”

He urged policymakers and stakeholders to build India as a hub for “global champions” in manufacturing, highlighting electronics, renewable energy, pharmaceuticals, and textiles as the primary sectors with long-term potential and resilience.

India's Electronics and Pharma Advantage

Singh elaborated on the untapped potential of India’s electronics industry, saying it remains a promising yet underexploited growth avenue. Similarly, India’s pharmaceutical sector enjoys global competitiveness with vast headroom for capacity expansion.

He noted that renewable energy and textiles also offer structural advantages, positioning India as a dependable partner in global value chains, particularly as multinational corporations diversify away from China.

Macroeconomic Realities and Short-Term Investment Concerns

Rahul Jain, MD and Senior Partner at BCG India, struck a cautious note regarding short-term macroeconomic uncertainties. He predicted that investment flows may slow temporarily due to decision paralysis and capital expenditure delays, but assured that domestic consumption would continue to drive growth regardless of external shocks.

Jain stated, “India’s resilience lies in its consumption story, which will remain robust irrespective of macro conditions.”

Scaling Up SMEs – The ‘Maruti Moment’

A compelling metaphor came from Jain, who likened today’s industrial climate to the early stages of India’s automobile revolution. Referring to small and medium enterprises (SMEs), he said, “This is our Maruti moment. We must scale SMEs like we scaled the auto sector decades ago.”

Strengthening the SME ecosystem is essential for generating employment, boosting local manufacturing, and building robust domestic supply chains that can weather global disruptions.

Shifting Global Supply Chains and India's China+1 Advantage

Jain also stressed the importance of India capturing the opportunities arising from the global shift away from China. Even a fractional share in the redirected supply chain could yield outsized benefits for India’s economy.

This “China+1” strategy is increasingly being adopted by international firms looking to de-risk from over-reliance on a single geography, and India stands as a logical destination due to its talent, policy push, and expanding infrastructure.

Innovation, AI, and Future Growth Drivers

Memani acknowledged signs of improving investor sentiment, especially in AI and innovation-driven startups, with early-stage funding slowly picking up. Singh remarked that India’s positioning in the AI race will be pivotal for the country's economic trajectory over the next decade.

Jain underscored climate and energy transition, alongside manufacturing, as the two most powerful engines of future growth. These sectors not only support long-term sustainability goals but also create employment and technology-led opportunities.

Conclusion: A Strategic Balancing Act

The Rising Bharat Summit painted a compelling picture of India’s readiness to play a bigger role in the evolving global trade order. With broad-based support for tariff reforms, strategic sectoral focus, and a growing innovation ecosystem, India could emerge as a manufacturing powerhouse—provided it capitalises on trade deals and repositions itself effectively.

As Memani summarised, “India is well-placed to strike a balanced trade agreement with the US”, and the coming months may define how effectively India leverages this inflection point.

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