HomeBusiness NewsZero tariffs and smooth customs are key expectations from India-US BTA: John Neuffer
Zero tariffs and smooth customs are key expectations from India-US BTA: John Neuffer
The US-India Trade Agreement could benefit the semiconductor industry with zero tariffs and efficient customs. John Neuffer, President & CEO of the US Semiconductor Industries Association (SIA), sees India becoming a key player in the $1 trillion market by 2030.
The ongoing negotiations for a Bilateral Trade Agreement (BTA) between the United States and India hold significant promise for the semiconductor industry, with zero tariffs and efficient customs procedures being top priorities.
John Neuffer, President & CEO of the US Semiconductor Industries Association (SIA), emphasised the critical need for such measures, stating, "Zero tariffs would be wonderful. Our industry is possibly the most global industry in terms of supply chains that's out there... We need zero-tariff treatment at the border, and we need customs clearance facilitation that's smooth and quick." He believes that if India can deliver on these aspects through the BTA, it will significantly boost business on both sides.
Neuffer also pointed out that there is a limited window for India to firmly establish itself in semiconductor manufacturing. The global semiconductor market is rapidly expanding and is projected to become a trillion-dollar industry by 2030, driven by the increasing demand from sectors like Artificial Intelligence and the automotive industry. "What's happening more broadly is that we're now about a $600 billion industry globally in terms of sales. We're probably going to be a trillion-dollar industry by 2030," Neuffer explained.
India is recognised as having substantial potential in this evolving landscape, especially during a time of global disruption. The announcement of six new semiconductor projects in the country over the past couple of years signals a positive trend. The potential for stronger collaboration between the US and India is further supported by initiatives like the technology cooperation agreement known as TRUST and the potential BTA. These mechanisms are expected to foster a more robust ecosystem for investments, helping India become a more integral part of the global semiconductor supply chain while also providing greater market access for US technologies in India, he said.
However, Neuffer stressed that while geopolitical factors create opportunities, the ultimate decision for US companies to invest more in India will depend on the business environment. He noted that India needs to ensure the right regulatory framework, trade policies, and standards are in place to attract greater investment. "India still needs to make the business case. There has to be the right ecosystem here, whether it's regulatory, trade, or standards, that makes sense for us to invest more here," he said.
Watch the accompanying video for the entire conversation.
John Neuffer, President & CEO of the US Semiconductor Industries Association (SIA), emphasised the critical need for such measures, stating, "Zero tariffs would be wonderful. Our industry is possibly the most global industry in terms of supply chains that's out there... We need zero-tariff treatment at the border, and we need customs clearance facilitation that's smooth and quick." He believes that if India can deliver on these aspects through the BTA, it will significantly boost business on both sides.
Neuffer also pointed out that there is a limited window for India to firmly establish itself in semiconductor manufacturing. The global semiconductor market is rapidly expanding and is projected to become a trillion-dollar industry by 2030, driven by the increasing demand from sectors like Artificial Intelligence and the automotive industry. "What's happening more broadly is that we're now about a $600 billion industry globally in terms of sales. We're probably going to be a trillion-dollar industry by 2030," Neuffer explained.
India is recognised as having substantial potential in this evolving landscape, especially during a time of global disruption. The announcement of six new semiconductor projects in the country over the past couple of years signals a positive trend. The potential for stronger collaboration between the US and India is further supported by initiatives like the technology cooperation agreement known as TRUST and the potential BTA. These mechanisms are expected to foster a more robust ecosystem for investments, helping India become a more integral part of the global semiconductor supply chain while also providing greater market access for US technologies in India, he said.
However, Neuffer stressed that while geopolitical factors create opportunities, the ultimate decision for US companies to invest more in India will depend on the business environment. He noted that India needs to ensure the right regulatory framework, trade policies, and standards are in place to attract greater investment. "India still needs to make the business case. There has to be the right ecosystem here, whether it's regulatory, trade, or standards, that makes sense for us to invest more here," he said.
Watch the accompanying video for the entire conversation.
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