India Gears Up to Counter China with Landmark Indo-US Trade Deal

Business News: An interim trade agreement between the two countries is expected to be agreed upon soon with the aim of encouraging business relations between India and the US, which can be implemented before 8 July. In this agreement, India has demanded a complete discount from 26% of additional tariffs on domestic products, which will further strengthen commercial relations between the two countries.

India emphasized the safety of agriculture and labor areas

Recently, Commerce and Industry Minister Piyush Goyal visited the US, where he met US trade representative Jemisson Greer and Commerce Minister Howard Lutynik. In this meeting, special emphasis was laid on intensifying the Indo-US trade talks. India has mainly demanded protection for labor-dominated areas such as agriculture, dairy, textiles, and leather, which has been given priority to measures such as quota fixation and minimum import price (MIP).

Congressional approval is necessary to cut US customs rates

The US has said that the approval of the US Congress will be necessary for cutting customs rates, but it is free to remove the counter tariffs imposed on India. India wants the US to abolish both 26% additional fees and 10% basic fees, making Indian products more competitive in the US market.

India will get big economic benefits

If India is exempted from tariffs on domestic products, Indian goods will be more competitive in the US. This will give special benefits to labor-intensive areas like cloth, leather, gems, and jewelry. Increased exports will strengthen India's economy, increase employment opportunities, and industries will grow rapidly.

India's position will be stronger than China's

The US plans to increase trade with India to reduce its dependence on China. This agreement will make India more competitive in the US market than China. It will also strengthen strategic partnerships for both countries and will have a positive impact on the regional economic balance.

Better opportunities in the US market

The interim trade agreement will include not only customs duty but also digital services and non-tariff barriers. Both these countries are committed to encouraging digital trade in their economies. This will give Indian IT and software service providers better opportunities in the US market. In non-fee barriers, reducing technical standards, licensing processes, and other administrative hurdles will also be part of the agreement, which will increase the speed and transparency of trade.

Agreement required before the end of 90-day restriction period

Officials of the two countries also want this interim agreement to be reached before the period of the ban imposed for 90 days at high customs. If this happens, the business will remain stable and uncertainty will end. If this agreement is not done on time, business obstacles may increase, causing damage to the exporters of both countries. Therefore, completing this agreement as soon as possible is considered important for both sides.

First step towards comprehensive bilateral trade agreement

This interim trade agreement proposed between India and the United States is considered to be the first decisive step towards a broad bilateral trade agreement (BTA). The two countries have set an ambitious target of crossing $500 billion by 2030, and this agreement in this direction can prove to be the founder.

For this, it is necessary that these initial obstacles be removed and business relations should be strengthened. This agreement will lay the foundation of a more comprehensive economic partnership between the two countries in the future, which will prove to be helpful in increasing the competition of both globally.