India is in the midst of an interesting situation in the global trade spectrum, highlighted by the country’s response to the newly imposed tariffs and high-profile visits to the country.
According to reports, officials concerned with the matter are hoping to bring a solid agreement with their counterparts in Washington DC within the ’90-day pause’ on revised tariffs for the US’s major trade partners, including India.
Rajesh Agrawal, the special commerce secretary who has been acting as India’s chief negotiator for the deal, is expected to embark on a three-day trip to the US in relation to the matter, according to an official.
India’s chief negotiator for the deal, Rajesh Agrawal, is expected to make a three-day trip to the United States starting Wednesday, an Indian official said.
Amidst all the uncertainty, India has still maintained a steady position in global trade. According to a report by Industrial Products Finder, gross foreign direct investments (FDIs) rose by 17.9 per cent y-o-y in the first eight months of FY25, clocking USD 55.6 billion, with the country crossing USD 1 trillion in cumulative FDI since 2000.
Rohan Dani, Investment Professional, BlackSoil, said that amid renewed global tariff tensions and macroeconomic uncertainty, India is emerging as a safe haven for long-term capital.
Dani cited the MSCI India Index, which revealed that the country has shown relative resilience, outperforming many regional peers with a decline of less than 3 per cent since April 2025.
“Foreign investors are increasingly redirecting capital toward India, encouraged by robust domestic demand and shifting global trade flows. What stands out is the growing appetite for India’s mid-market ventures, particularly in high-growth sectors like healthcare, fintech, and renewable energy. This reflects investor confidence in the country’s fundamentals and innovation-led growth,” said Dani.
Over the last decade, startups have been monumental to India’s growth story and have contributed close to 15 per cent to the country’s GDP during the period.
This is reflected in the active funding activity in the country, especially in the technology sector. In the first quarter of 2025 alone, Indian tech startups raised USD 2.5 billion in funding — a 13.64 per cent increase from the previous quarter and an 8.7 per cent rise year-on-year — making India the third most-funded country globally, after the US and the UK, according to Tracxn’s Geo Quarterly India Tech Report.
“India stands out as a very large, high-growth economy with a thriving startup ecosystem and well-developed and regulated capital markets. Given the increased uncertainty over China due to tariff tensions, it becomes an even stronger haven for capital in a volatile world. Hence, we should expect a stronger appetite for Indian assets in both public and private markets,” said Deepak Gupta, General Partner, WEH Ventures.
On the backdrop of the ongoing tensions, US Vice President JD Vance has also begun a four-day trip to India, where he is expected to hold talks with Prime Minister Narendra Modi about progress made on the bilateral agenda.
The Vice President’s visit comes at a crucial time, as India aims to take advantage of tensions between China and the US and push to achieve the USD 500 billion trade target by 2030.
In a week of multiple high-level engagements between the US and India, Finance Minister Nirmala Sitharaman is also on a five-day trip, attending meetings at the International Monetary Fund and the World Bank, as well as a meeting of G20 finance ministers and central bank governors, according to a statement by the Indian government.
The long and short of engaging with the US is not about the tariffs but also in the interest of “our largest trading partner with whom we need to have an agreement,” said Sitharaman, addressing an event held in San Francisco.
Vikas Choudhury, Managing Partner at Playbook Partners said that India isn’t just an option — it’s the answer, and amid global trade tensions and protectionist policies, India presents a combination of a stable government, cordial geopolitical relationships, and strong economic growth.
“Our large domestic market, driven by a young, digital-first population, underpins demand-side strength. At the same time, India is fast emerging as the preferred global hub for manufacturing and services, backed by structural reforms and supply chain diversification. For serious investors seeking both scale and returns, India isn’t just an option — it’s the answer,” said Choudhury.