Chintan Vaishnav on India US Relationship, Trade Tariffs, and the 2025 Innovation Ecosystem

The US–India relationship is at an inflection point. At the US–India Chamber of Commerce Austin’s 3rd Annual Summit on August 27, 2025, Chintan Vaishnav, former Director of the Atal Innovation Mission at NITI Aayog, delivered a keynote that crystallized India’s evolving role on the global stage.

“We have counted on India for labor—and it has delivered.
We have counted on India for talent—and it has delivered.
We can count on India for ideas—and it will deliver.”

This framing, now widely circulated, reflects both Vaishnav’s long-standing views and global economic trends: India is moving from being a source of labor and talent to becoming a hub of original ideas and innovation.

Texas–India: A Flourishing Corridor

The summit showcased the expanding Texas–India economic corridor. If Texas were a country, it would rank as the eighth-largest economy in the world. India, already among its top 20 trade partners, has steadily deepened its commercial presence in the region.

Key voices added weight to the discussions. Manjunath Chenneerappa, India’s Consul General in Houston, underscored the diaspora’s role in strengthening bilateral ties. Anupam Govil traced the Chamber’s consistent efforts in trust-building, while Dr. Pritesh Gandhi inspired attendees with his focus on healthcare for underserved communities.

For Vaishnav, however, the most energizing takeaway was the entrepreneurial drive—both from young founders and seasoned innovators—who embody India’s future as a supplier of bold ideas.

Tariff Shock: A New Test for Trade

On the same day as the summit, President Donald Trump announced a doubling of US tariffs on Indian goods, raising duties from 25% to 50%. The White House justified the move by citing India’s continued purchases of discounted Russian oil.

The tariffs struck hard. More than half of India’s exports to the United States are now affected, especially in labor-intensive industries like textiles, gems and jewellery, seafood, and leather goods. India’s Chief Economic Adviser, V. Anantha Nageswaran, projected a 0.5–0.6% GDP impact for FY26, underscoring the scale of the shock.

For exporters and workers, particularly in small and medium enterprises, the fear is immediate: declining US demand threatens both jobs and competitiveness.

India’s Strategic Response

New Delhi swiftly labeled the tariffs “unfair and unreasonable.” But rather than retaliating with counter-measures, the government chose to cushion the domestic economy with structural reforms.

• The GST Council approved an overhaul effective September 22, 2025, shifting to a two-tier system of 5% and 18%, alongside a 40% demerit rate for luxury and sin goods. Essential products such as food, toiletries, and small vehicles will benefit from cuts aimed at stimulating consumption.

• The Finance Ministry is preparing a relief package for exporters, focusing on liquidity support and job protection in vulnerable sectors including apparel, gems, jewellery, chemicals, and leather.

This approach signals India’s emphasis on resilience and internal demand stimulation, rather than direct confrontation.

India’s Edge in the Next Chapter

While tariff battles dominate the headlines, Vaishnav’s keynote reminds us of a bigger truth: India’s greatest export in the coming decades will be ideas.

The country has already delivered as a global workforce and as a source of world-class talent. Now, through its innovation ecosystems, startup networks, and policy-driven entrepreneurship, India is positioned to become a trusted source of solutions for global challenges.

Trade disputes may shake short-term numbers, but ideas cannot be taxed. As India strengthens its foundations at home and expands its role in corridors like Texas, it is shaping itself as a partner of equals in the global economy.

The US–India partnership will not only be about labor or talent—it will be about creating the future together.

Frequently Asked Questions (FAQ)

1. What did Chintan Vaishnav say at the US–India Chamber Summit 2025?
He highlighted India’s evolution: first as a source of labor, then talent, and now as a hub of ideas and innovation.

2. Why did President Trump impose 50% tariffs on Indian goods in 2025?
He cited India’s continued imports of discounted Russian oil as the reason for doubling tariffs from 25% to 50%.

3. Which Indian industries are most affected by Trump’s tariffs?
Labor-intensive sectors such as textiles, gems and jewellery, seafood, and leather face the sharpest impact.

4. What was India’s response to the US tariffs in 2025?
India called the tariffs “unfair and unreasonable,” rolled out a two-tier GST reform, and prepared a relief package for exporters.

5. What is the Texas–India economic corridor?
It is a growing trade and innovation corridor; Texas is the world’s 8th-largest economy and India is among its top 20 trade partners.