The long-running trade talks between India and America now seem to be almost reaching their destination. Commerce Secretary Rajesh Aggarwal said that both the countries have resolved most of the issues of dispute and there is great hope that a strong trade deal will be announced before the end of the year. This statement has raised new hopes in the industry that India-US trade relations are moving towards a major change.
Talks progressed, most issues resolved
According to the Commerce Secretary, several rounds of discussions have taken place between India and America in the last few months. Both sides have tried to find agreement even on those subjects where earlier there were differences. The Secretary said that the process is now in the final stages and soon both the countries can make a formal announcement.
Trade relations between India and America have always been strong, but disputes over tariffs and trade fees had increased in recent times. This is the reason why both the countries are now serious about a balanced and beneficial deal.
Resolution of tariff disputes: The biggest need for a deal
The most important part of this possible trade deal is to resolve the tariffs increased by the US administration. During the Donald Trump administration, America had increased the import duty on Indian products by 50%, which affected both Indian exporters and the global supply chain.
Many Indian companies say that the increased tariffs had made their products less competitive in the US market. Therefore, if the new agreement reduces these duties, it will be a big relief step for India.
Target to complete the first phase this year
India and America are now working on a bilateral trade agreement, for which six rounds of negotiations have already taken place. The aim of both the countries is to complete the first phase of the agreement by the end of this year. With this, negotiations on further complex issues will be able to move forward more easily.
India is working on trade agreements with many countries
Commerce and Industry Minister Piyush Goyal recently said that India is negotiating Free Trade Agreement (FTA) not only with America but also with many countries and groups of about 50 countries. This will further strengthen India’s global trading position and make it easier to access new markets.
Why is India-US deal important?
India and America are two big economies of the world and the trade relationship between the two countries has been growing for years. The new deal is expected to provide relief to Indian exporters, better access to the Indian market to American companies and more choices to the consumers of both the countries.
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