India and the US are working to remove trade barriers and enhance mutual market access through a Bilateral Trade Agreement (BTA) aimed for completion by fall 2025. Minister Jitin Prasada noted ongoing efforts to reduce tariffs and improve supply chain integration, with both nations striving for a balanced trade relationship.
India and the United States are actively collaborating to eliminate trade barriers, enhancing mutual market access, while focusing on reducing both tariff and non-tariff obstacles, as stated by Jitin Prasada, the Minister of State for Commerce. He addressed these developments in the Lok Sabha following a ministerial delegation’s tour of the US aimed at negotiating a Bilateral Trade Agreement (BTA), which they aspire to finalize by the fall of 2025.
In response to inquiries about tariffs affecting Indian exports to the United States, Prasada confirmed, “As on date, reciprocal tariffs have not been applied by the US on India.” His remarks were made after Commerce Minister Piyush Goyal’s recent visit to the US, during which discussions centered on reducing tariffs, particularly high rates on vehicles, for mutual economic benefit.
The proposed BTA could prompt India to lower its tariffs while also supporting labor-intensive sectors such as textiles, gems, marine exports, and engineering products. According to the Ministry of Commerce, India exported significant goods, including $17.62 billion in engineering products and $10 billion in electronics for the fiscal year 2023-24.
In a meeting on February 13, Prime Minister Narendra Modi and President Joe Biden established an ambitious goal to enhance bilateral trade to $500 billion by 2030, denoting an increase from current figures of roughly $190 billion. Furthermore, a memorandum regarding reciprocal trade was released, indicating that actions will be taken following investigations into non-reciprocal trade arrangements by the US.
Prasada also highlighted a fact sheet from the US demonstrating substantial trade disparities; for instance, the average applied tariff on agricultural goods in the US is 5%, while India’s is 39%. Moreover, motorcycles imported from the US to India face a 100% tariff, contrasting with India’s mere 2.4% tariff on US motorcycles.
An Indian official affirmed that India is pursuing a balanced trade relationship with the US, emphasizing cooperative efforts to resolve both tariff and non-tariff challenges. In 2023, India’s goods exports to the US amounted to $83.77 billion, with imports accounting for $40.12 billion, leading to a significant trade deficit of $43.65 billion for the United States.
In summary, the ongoing negotiations between India and the United States aim to eliminate trade barriers and enhance market access, with a focus on reducing tariffs. The establishment of a Bilateral Trade Agreement and the ambitious goal of reaching $500 billion in bilateral trade by 2030 mark significant milestones in their trade relationship. Continuous dialogues will be essential in addressing tariff discrepancies to strengthen this partnership.
Original Source: www.hindustantimes.com
