How the next American president could affect ties between India and the US

NEW DELHI: For years, leather products manufacturer Alpine Apparels could export goods to the United States tariff-free under a voluntary trade measure known as the generalised system of preferences (GSP).

That came to a halt in 2019 when the Trump administration withdrew special trade privileges for India – and they have not been reinstated since.

Mr Sanjay Leekha, Alpine Group’s founder and chairman, is now worried that another Trump presidency will spell more bad news for Indian exporters like his.

«When the GSP went away, it increased our landing cost into the US by about 4 to 6 per cent, which is a substantial cost,” he told CNA.

As the final countdown begins to the US election on Tuesday (Nov 5), observers in India said they believe the ties between both nations are set to change, no matter who wins the race to the White House.

Trump, who was president from 2017 to 2021, has called India a „big abuser of American tariffs“.

His opponent, Vice President Kamala Harris, is expected to continue the approach of President Joe Biden, who previously described the US-India relationship as “the most defining of the decade”.

But analysts said her outspokenness about human rights might cause tensions with Indian President Narendra Modi's government.

India exports far more to the US than it imports, putting the bilateral trade deficit at over US$45 billion in New Delhi’s favour.

Experts agreed that the last four years of Biden's presidency have brought more stability on the trade and strategic front. He embraced New Delhi wholeheartedly, hosting Modi on his first state visit to the US this year.

During Biden's tenure, both countries also settled outstanding trade disputes, with the US beginning to share critical technology with