us eyes deeper india ties: vance pushes for trade barrier reduction
New Delhi, Wednesday, 23 April 2025.
vice president jd vance is in India advocating for a reduction in non-tariff barriers. This move could pave the way for a comprehensive trade agreement. The us aims to boost energy exports and assist India in offshore gas exploration. Enhanced defense collaboration is also on the table. These discussions occur amidst growing strategic alignment in the Indo-Pacific region, signaling a potentially significant shift in the semiconductor trade and supply chains.
Trade deal progress
According to Indian government officials, U.S. Vice President JD Vance met with Indian Prime Minister Narendra Modi on Monday in New Delhi to discuss bilateral trade [2]. Both sides reported ‘significant progress’ in negotiations for the first phase of a trade agreement [2][4]. Vance’s office indicated that a roadmap for future economic discussions was established [2]. Vance is on a four-day state visit to India [1]. Discussions are expected to cover energy cooperation, strategic defense technologies, and other areas of mutual interest [2].
Semiconductor industry implications
The U.S. is focused on diversifying its semiconductor supply chain, presenting India with a significant opportunity to expand its role in this sector [8]. These efforts align with broader concerns about the concentration of chip manufacturing in specific regions, particularly Taiwan [GPT]. Taiwan’s Economy Minister Kuo Jyh-huei advocates for ‘fair competition’ in the semiconductor market [8]. AMD’s CEO stated readiness to begin chip production at TSMC’s Arizona plant [8]. These developments suggest potential shifts in investment strategies within the global semiconductor industry [GPT].
Market reactions and potential risks
Asian ADRs experienced a downturn in the week of April 17, 2025, influenced by trade tensions and tech sector volatility [7]. U.S. restrictions on semiconductor exports, such as those affecting Nvidia’s sales to China, have contributed to market instability [7]. Goldman Sachs has warned of a potential $830 billion forced sell-off due to delisting risks faced by over 100 Chinese firms on U.S. exchanges [7]. These factors highlight the sensitivity of Asian markets to U.S. trade policies and geopolitical tensions [7].
Defense and energy sector opportunities
The U.S. aims to expand energy exports to India and assist in offshore gas exploration, indicating potential investment opportunities in these sectors [1]. Enhanced defense collaboration is also a key objective, with the U.S. seeking to co-produce defense equipment and increase military equipment sales to India [1]. Vice President Vance emphasized the shared strategic goals of the U.S. and India in maintaining regional security [1]. These initiatives could lead to increased activity and potential growth for companies in the defense and energy industries [GPT].