The long-running trade talks between India and the US seem to be nearing completion. Commerce Secretary Rajesh Agarwal said the two countries have resolved most of the contentious issues and a strong trade deal is expected to be announced before the end of the year. The statement has raised new hopes in the industry that India-US trade relations are heading for a major transformation.
Negotiations are progressing rapidly, most of the issues have been resolved.
According to the Commerce Secretary, there have been several rounds of discussions between India and the US in the last few months. The two sides have also tried to find consensus on issues where there were earlier differences. The secretary said that the process is now in its final stages and both countries may make a formal announcement soon.
Trade relations between India and the United States have always been strong, but recently disputes over tariffs and trade duties have escalated. This is why both countries are now serious about a balanced and beneficial deal.
Resolution of tariff disputes: A core requirement of the deal
The most important aspect of this potential trade deal is the resolution of tariffs imposed by the US administration. During the Donald Trump administration, the US increased import duties on Indian products by up to 50%, impacting both Indian exporters and the global supply chain.
Many Indian companies say the increased tariffs have made their products less competitive in the US market. So, if the new agreement reduces this duty, it will be a big relief for India.
Aim to complete the first phase this year
India and the United States are now working on a bilateral trade agreement, with six rounds of negotiations already underway. Both countries aim to complete the first phase of the agreement by the end of this year. This will facilitate negotiations on more complex issues.
India is working on trade agreements with many countries
Commerce and Industry Minister Piyush Goyal recently said that India is negotiating Free Trade Agreements (FTAs) not only with the United States, but also with many other countries and blocs comprising about 50 countries. This will strengthen India's global trading position and facilitate access to new markets.
Why is India-US deal important?
India and the United States are two of the world's largest economies, and their trade relations have been growing over the years. The new deal is expected to provide relief to Indian exporters, better access to the Indian market for American companies, and greater choice for consumers in both countries.
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