India-US trade deal update
A big and positive news has come out regarding trade relations between India and America. Commerce Secretary Rajesh Aggarwal has said that both the countries are very close to finalizing an initial interim agreement to reduce reciprocal tariffs. This is especially expected to provide great relief to Indian exporters.
Rajesh Aggarwal said that so far six rounds of talks have taken place between India and America. In these meetings, not only a large Bilateral Trade Agreement (BTA) was discussed, but an interim framework deal was also considered. The government’s focus at present is to reduce the heavy tariffs imposed on as many Indian products as possible.
The recent visit of US delegation is important
In early December, the American delegation led by the Deputy US Trade Representative came to New Delhi. During this, both the countries reviewed the current status of trade relations and it was seen how much progress has been made on the proposed deal. This visit is being considered important for taking forward the dialogue between the two countries.
American side also satisfied with India’s offer
The US Trade Representative recently said that the ‘best’ proposal has been received from India so far. Although America’s concerns remain regarding some agricultural products, both countries are trying to reach a mutual consensus on these issues.
Why is this interim agreement necessary?
At present, high tariffs are imposed by America on India’s exports worth about 48 billion dollars. First, 25 percent duty was imposed on Indian goods on the issue of trade deficit and later additional penalty was also added on purchasing oil from Russia. In such a situation, if there is a reduction in tariff, Indian exports can get a big benefit.
Also read:
Indian goods stun the world, 10 year record broken in November
‘Mission 500’ becomes a big target
India and America have set a target of increasing mutual trade to 500 billion dollars by 2030, which has been named ‘Mission 500’. To achieve this goal, both countries are working on a multi-sector trade agreement. Although the deadline has been pushed forward, the government hopes that at least an interim deal will be reached by 2026.
America becomes India’s biggest trade partner
America remains India’s largest trading partner for the fourth consecutive year. The total trade between the two countries is more than 130 billion dollars. America’s share in India’s total exports is about 18 percent, which shows the importance of this relationship.