The Indian government is collaborating with the United States to remove trade barriers, with a focus on increasing market access, and establishing a Bilateral Trade Agreement by 2025. Recent discussions aim to address tariff discrepancies and promote fairness in trade practices. Prime Minister Modi and President Trump set a goal to significantly enhance bilateral trade by 2030, striving for a total of $500 billion.
India and the United States are actively working to eliminate trade barriers, aiming to boost market access, lower tariffs, and enhance supply chain integration, as stated by Jitin Prasada, the Minister of State for Commerce. These discussions follow a recent ministerial delegation’s visit to the United States, with a particular focus on establishing a Bilateral Trade Agreement (BTA) anticipated to be finalized by the fall of 2025.
Minister Prasada noted that, to date, the United States has not imposed reciprocal tariffs on Indian exports. This remark follows the conclusion of a visit by Commerce Minister Piyush Goyal, during which officials explored reducing high tariffs on significant sectors such as automobiles. Such actions are expected to foster mutual gains, particularly benefiting sectors such as engineering goods and textiles.
Trade data reveal India’s robust export figures in key sectors, including engineering goods worth $17.62 billion and electronic products totaling $10 billion for the fiscal year 2023-24. The bilateral trade ambitions are further underscored by the agreement reached between Prime Minister Narendra Modi and President Donald Trump to establish a “Mission 500” goal, which aims to exceed $500 billion in bilateral trade by 2030.
The United States has initiated a process to examine trade practices through a recent memorandum concerning reciprocal trade and tariffs, directing its commerce secretary to investigate trade harm from non-reciprocal arrangements. This will lead to proposed remedies for identified issues. India continues to engage with the U.S. government to foster fair and mutually beneficial trade relations.
The Trump administration has emphasized the need for a balanced trade relationship, highlighting discrepancies in tariff applications, such as the U.S. average tariff of 5% on agricultural goods compared to India’s 39%. In terms of bilateral trade statistics, the India-U.S. trade reached $190 billion in 2023, with India exporting significantly more goods than it imported, resulting in a trade deficit for the U.S.
In conclusion, India and the United States are significantly focused on reducing trade barriers to enhance bilateral relations. The ongoing discussions aim to achieve a beneficial Bilateral Trade Agreement by 2025 while addressing reciprocal trade practices. The anticipated positive outcomes may bolster various sectors in India, further strengthening the economic partnership between both nations. The overarching goal to double bilateral trade reflects their commitment to robust trade ties.
Original Source: www.hindustantimes.com
