India and US to Strengthen Trade Ties by Reducing Tariffs and Barriers: Prasada

India and the United States are working towards a new trade agreement that will focus on expanding market access, lowering import duties, and addressing non-tariff barriers. The goal is to enhance supply chain integration and strengthen economic ties between the two nations.

Minister of State for Commerce and Industry Jitin Prasada informed Parliament that as of now, the US has not imposed reciprocal tariffs on India. Both countries plan to negotiate a comprehensive Bilateral Trade Agreement (BTA) covering multiple sectors. The US government has also initiated a review of non-reciprocal trade arrangements with its partners, which may impact future trade policies.

During Prime Minister Narendra Modi’s visit to Washington last month, India and the US committed to increasing bilateral trade to $500 billion by 2030. The first phase of the BTA is expected to be finalized by late 2025. In 2023, trade between the two nations amounted to $190.08 billion, including $123.89 billion in goods and $66.19 billion in services. India’s merchandise exports to the US were valued at $83.77 billion, while imports stood at $40.12 billion, creating a trade surplus of $43.65 billion in India’s favor.

The US remains India’s largest trading partner, with key exports including engineering goods ($17.62 billion), electronics ($10 billion), gems and jewelry ($9.9 billion), petroleum products ($5.83 billion), textiles ($4.7 billion), and marine products ($2.5 billion). India continues to pursue free trade agreements (FTAs) to facilitate smoother trade. Currently, India is a member of 13 FTAs and 9 Preferential Trade Agreements (PTAs) and is negotiating new deals with the EU, UK, and Oman.

Source: Business Standard