Billionaire Gautam Adani sees the combined Gross Domestic Product (GDP) of India and the United States touching $70 trillion by 2050 and believes that the existing $150 billion of bilateral trade between the two countries is “no more than a speck in the ocean”.
Speaking at a US-India Business Council (USIBC) award function on September 7, Adani said the two countries need to resolve issues relating to trade and tariffs to cooperate, especially in some strategic areas. Adani was presented with the USIBC Global Leadership Award for 2022.
“While negotiators from both our countries have struggled to reach a deal on a trade package and tariffs, I believe we are closer than ever before to address the open matters. I am confident we will resolve this and mutually accept some compromises. What we cannot afford is to remain stuck in the belief that all aspects of trade and relations are being hampered as a result of tariffs,” Adani said.
He identified climate change, semiconductors, healthcare, defence and cyberspace as some of the strategic areas for joint progress between the US and India. He said the US could facilitate technology transfer in defence and cyber.
Commitment to climate change mitigation
Adani highlighted that his group had committed $70 billion to mitigate the impact of climate change. The group is expected to build three giga factories in India and create one of the world’s most integrated green-energy value chains. “This initiative is expected to extend from polysilicon to solar modules, complete manufacturing of wind turbines, and the manufacturing of hydrogen electrolysers,” Adani said.
With this, the group is set to generate an additional 45 GW of renewable energy to add to its existing 20 GW capacity as well as 3 million tonne of hydrogen –- which will be completed before 2030.
The need for semiconductors
Adani urged the two countries to collaborate on semiconductor manufacturing, saying there was a growing global need for semiconductors.
“The paradox of capitalism is that India continues to be the best global pool for millions of engineers – especially for US companies – but the primary value addition to the businesses happens outside India. The semiconductor industry is a classic example with more engineers deployed in India than anywhere else in the world, and yet India has no semiconductor plant. India cannot remain dependent on global supply chains that are based on semiconductor nationalism and will need the US support with technology transfer,” he said.
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