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US Commerce Secretary Howard Lutnick has expressed optimism over a potential trade agreement between the United States and India, emphasizing the need for New Delhi to scale back its involvement in the BRICS alliance. Speaking at a recent event in Washington, Lutnick pointed to India’s military ties with Russia—another BRICS member—as a sticking point in US-India relations. “There were certain things that the Indian government did that generally rubbed the United States the wrong way. For instance, generally buying your military gear from Russia,” he said. However, he noted that India is now shifting towards purchasing military equipment from the US, signaling a positive step forward in bilateral ties.
US Wants Market Access, India Wants Reciprocity
Lutnick stressed that the US is seeking fair access to India’s massive market to help reduce the ongoing trade deficit. “We would like our businesses to have reasonable access to the markets of India. We want to have the trade deficit reduced,” he said. In return, India is expected to seek preferential access to American markets. With India’s $3.7 trillion economy and a population exceeding 1.4 billion, the South Asian giant represents a lucrative opportunity for American companies. Lutnick acknowledged India’s efforts to position itself as one of the first BRICS countries willing to realign trade policies to benefit both sides.
Also Read: BRICS Push for De-Dollarization Faces Skepticism from Singapore Central Bank Chief
India Rejects De-Dollarization, Reaffirms US Ties
Earlier this year, India distanced itself from the BRICS-led de-dollarization push, reinforcing its commitment to the US dollar and existing trade frameworks. With strong GDP growth and a thriving IT sector tightly linked to American companies, the Modi government is cautious about disrupting economic ties with Washington.
India’s refusal to embrace de-dollarization and its continued cooperation with the US have underscored its strategic balancing act within BRICS. Lutnick’s remarks suggest that while the US views India as a potential wedge within the BRICS bloc, the long-term goal is to foster mutually beneficial economic ties—bolstered by political goodwill and massive market potential.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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