China on Alert, Pakistan Rattled! Indo-US Trade Talks Trigger Global Ripples

National News: A new chapter can be added to business relations between India and America. Both countries may soon make an interim trade agreement. Commerce and Industry Minister Piyush Goyal has given positive indications in this direction after high -level talks in the US. He shared on the social media platform 'X' that there has been a meaningful and creative talks on business issues with the US. Goyal has been on a tour of the US for the last four days, where the top dalits of India and the US are churning on the draft possible trade agreement.

Attempt to solve the fee crisis

According to sources, the two countries can agreed to an interim system before the formal announcement of the bilateral trade agreement (BTA). Its purpose is to reduce commercial obstacles caused by American fee policies.

Significantly, in April 2024, the US implemented a reply fee of 26% against India, which was postponed for 90 days. This period is being completed in the second week of July. Before this, preparations are being made for a viable solution.

India's priorities: Employment based exports promoted

India wants the US to implement zero or minimum import duty on employment sectors - such as textiles, leather, jewelery, engineering and pharma. This will not only increase exports, but will also give great encouragement to domestic construction and employment.

America demands: Tax relief and flexibility in standards

On the other hand, the US wants India to give exemption in fees on electric vehicles, wine, ethanol, industrial goods and certain food products. Also, he also wants a discount or softening of Indian quality control rules.

India has implemented strict standards under the Bureau of Indian Standards (BIS) on many products in the last two years. Under this, import without BIS certificate is not possible and BIS inspection is mandatory in a foreign factory before issuing certificates. America wants flexibility in this process.

Relief possible on fruit-dry fruits, bottlenecks on dairy

India may consider giving limited customs relief to the US on fruits and dry fruits, but India's condition over dairy products remains strict. The Indian government is giving top priority to the safety of local producers in the region.

Important deal from strategic perspective

This potential business agreement is considered not only important but also from strategic point of view. China is keeping a close watch on the agreement, as it can further strengthen the economic proximity of Indo-US. At the same time, this can prove to be a shock for Pakistan, because India's global diplomatic strength will increase further. The proposed interim trade agreement between India and the US can open new doors of harmony and cooperation for both countries. This will benefit India in the field of export and manufacturing, while the US will get a platform to secure its business interests. This agreement can also become the foundation of the complete trading treaty later.