Liberalization of India’s Trade and Investment Policies: Pitfalls and Advantages for U.S. Firms Doing Business in India

A rich history of trade and commerce ties America to India. This paper examines the contemporary trade issues between America and India, particularly in light of recent economic reforms in India. It inquires into and analyzes the various advantages India can provide for US businesses as a foreign investment destination. Various barriers to trade between these two nations are identified, such as tariff and nontariff barriers, quota restrictions, and infrastructural and social barriers. This paper gives a brief overview of some of the recent economic policy changes in India, suggests legislative and policy improvements required to attract more US investments in India, identifies areas, products, commodities, and services that have potential for trade, and examines priority trade disputes between the two nations. Finally this paper discusses other relevant factors to bilateral trade between the US and India, such as India’s weak IPR legislation, America’s ban on export of sensitive “dual purpose” technology to India, and India’s complex bureaucratic and regulatory process