India-US Bilateral Trade is the top discussing agreement between the nations that will allow market access to firms in both nations. The outcome of this will be to increase trade volumes, settle tariff disputes, and generally increase investment, which will surely lead to increased economic activity between India and the US.
India and the US have enjoyed a long and successful trade relationship. Bilateral trade reached $191 billion within the last few years. Additionally, both countries plan to continue this trend, and one of the stated aims of the countries is to increase bilateral trade to $500 billion by 2030. This would create one of the most significant trade agreements in the world.
Preferential Market Access and Its Implications
The proposed trade agreement will allow firms in both countries to expand their business with fewer restrictions. This includes appropriate tariff reductions, regulatory certainty, and investment potential. Which would create a better environment for firms to enter new markets and grow accordingly.
to benefit due to this expansion of trade, including:
Technology & IT Services – Indian technology firms won’t have to jump through as many hoops to gain access to the US marketplace.
Manufacturing & Engineering – The export of Indian goods entering the US will be expanded.
Pharmaceuticals & Healthcare – Greater opportunity for collaboration on medical research and the export of drugs.
Agriculture & Food Processing – Less restriction of trade barriers for agricultural products. Addressing Tariffs Our experience with India-US trade has been high tariffs on steel and aluminum.
In a recent act, the US has doubled the tariffs of these imports to 50%, which impacts Indian exporters. First, India’s response would be to negotiate a way to have those imports excused. And second determine what retaliation could be taken to protect Indian industries.
Future and Trade Negotiations It is anticipated that the bilateral interim trade agreement will be concluded by June 2025. The ongoing negotiations are being held to settle any tariffs and discover if more areas of business collaboration exist. This agreement lays the groundwork for a larger trade agreement in the future – a bigger deal that is good for both countries.
The India-US agreement on bilateral trade is a significant step toward improved economic relations. By expanding market access and removing trade barriers, both nations aim to boost investments, create jobs, and increase their competitiveness in the global economy.
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