Business · Trade · 7 hrs ago
Roubini says market pressures will push US toward a better relationship with India
Nouriel Roubini expects US market pressures to encourage a more constructive approach to India.
India and the United States are working to resolve differences and reach a trade deal.
Roubini said maintaining strong trade ties with India is important for the US, which he described as a rising economy aligned with many US and Western objectives.
He expects US tariffs to fall further from 9%, amid concerns about inflation and affordability.
Roubini called India a bright spot in the global economy, pointing to its large domestic market and skilled workforce.
He said India would need growth closer to 9%, rather than the roughly 7% forecasts, to create enough jobs as artificial intelligence changes work.
Manufacturers shifting away from China could bring more business to India, though Roubini said continued reforms and further opening to the world would help the country reach its potential.
Nouriel Roubini said economic and market pressures would push the United States to take a more constructive approach toward India.
He said maintaining good relations with India, including on trade, was critical for the United States.
Roubini expects US tariffs to fall further from 9% amid concerns about inflation and affordability.
He described India as a bright spot in the global economy but said it needs growth close to 9% to generate enough jobs.
He said manufacturers diversifying away from China could increasingly move operations to India.
- Who
- Economist Nouriel Roubini.
- What
- He said market pressures would push the United States toward a more constructive relationship with India.
- When
- He made the remarks in an interview published on October 15, 2026.
- Where
- Dubai, on the sidelines of the SuperReturn Middle East event.
- Why
- He said India is a large, rising economy aligned with many US and Western objectives, and that maintaining good relations with India is critical.
This story does not have two clearly opposing sides.
US tariffs rose from around 3% to nearly 30% under the Trump administration.
The US Supreme Court scrapped the emergency tariffs, after which US tariffs retreated to 9%.
Roubini said market pressures would push the United States toward a more constructive approach to India.
- US tariffs
- 9% after retreating from nearly 30%
- India GDP growth
- 7.8% in the first quarter of fiscal 2026-27
- Roubini's job-growth estimate
- India needs growth close to 9%
- Interview location
- Dubai
- Event
- SuperReturn Middle East
What people are saying
Markets will force the US to adopt a more constructive approach, including towards India
US policymakers need to recognise that maintaining good relations with India, including trade is critical and fundamental
But growth of 7% is not enough. India needs to get closer to 9% to ensure that young people can secure good jobs
Geopolitics benefits India because China is increasingly considered risky. Concerns about offshoring to China are leading to nearshoring and friendshoring