Kudlow, who served as Trump's informal economic adviser during the 2016 campaign, is a well-known conservative voice.
During his first term as the US president, Trump described India as a "tariff king" and in May 2019, terminated India's preferential market access.
Trump offered to be the "mediator" between India and Pakistan on the Kashmir issue as he met Prime Minister Imran Khan at the White House.
The announcement came amidst high tensions between the US and China.
Over the past several weeks, the Trump administration has come out in support of India against China.
Even as the election was yet to be called in Pennsylvania and Georgia where Biden has taken over Trump in terms of the vote count, albeit by a thin margin, the window for Trump was fast closing down.
The decision comes as countries around the world seal their borders and ban travel to stop the fast-spreading COVID-19 pandemic that has claimed over 9,000 lives so far.