India and the US are working to remove trade barriers while enhancing market access and supply chain integration, aiming for a Bilateral Trade Agreement by fall 2025. Minister Jitin Prasada emphasized the ongoing discussions to lower tariffs and the potential benefits for various sectors. Trade between India and the US exceeded $190 billion in 2023, with significant exports from India.
India and the United States are actively collaborating to eliminate trade barriers, with a focus on improving market access, reducing tariffs, and fostering supply chain integration. Minister of State for Commerce, Jitin Prasada, announced these objectives in the Lok Sabha following a recent US visit by an Indian ministerial delegation. This effort is part of the ongoing work on a Bilateral Trade Agreement (BTA), which aims for completion by fall 2025.
In a detailed response, Prasada indicated that the US has not currently imposed reciprocal tariffs on Indian exports. This statement comes shortly after a visit by Commerce Minister Piyush Goyal to the US and amid discussions in New Delhi to negotiate lower tariffs on key products like automobiles. These efforts are expected to facilitate mutual economic benefits.
The upcoming trade negotiations may call for India to consider reducing its tariffs, particularly benefiting labor-intensive sectors such as engineering, gems and jewelry, marine products, textiles, and carpet manufacturing. Data from the Ministry of Commerce shows significant Indian exports in these sectors, including $17.62 billion in engineering goods in FY 2023-24.
Prime Minister Narendra Modi and former President Donald Trump set ambitious trading targets during their meeting in February, setting a goal to double bilateral trade to $500 billion by 2030 with the initiation of a multi-sector BTA by 2025. The engagement is geared towards strengthening trade ties in a fair and mutually advantageous manner.
Prasada also referenced a memorandum issued by the US on reciprocal trade that mandates further investigation into non-reciprocal trading practices of other nations. This initiative is part of broader efforts by the US to ensure equitable trade relationships and address disparities in tariff structures, notably highlighting the discrepancy between average MFN tariffs for agricultural goods between India and the US.
As of 2023, bilateral trade between India and the US in goods and services exceeded $190 billion, with India exporting $83.77 billion worth of goods to the US while importing $40.12 billion, creating a significant trade deficit for the US.
In conclusion, the efforts between India and the United States to eliminate trade barriers are fundamental to enhancing bilateral relations. The focus on reducing tariffs and improving market access is set to benefit multiple sectors in India. With an ambitious target for bilateral trade by 2030, both nations are working towards a fair and mutually beneficial trade environment.
Original Source: www.hindustantimes.com
