New Delhi: The high-level US-India trade negotiations, ending in a bilateral agreement, could pave the way for increased leverage for India in the security and regional issues, a report has said.
Reducing dependence on Chinese supply chains is a US priority, and India’s large, skilled workforce provides attractive alternatives for American companies, a report from India Narrative stated.
Negotiators have argued that reducing tariffs on pharmaceuticals, textiles, and IT services could help India recapture lost market share and reinforce its position as an alternative supply-chain hub to China.
India’s increasing demand for energy and advanced defence systems presents lucrative opportunities for US exporters, the report added.
New Delhi has pressed Washington to roll back punitive duties that drove its shipments to the US down from $8.01 billion in July to $6.86 billion in August.
Both sides appear determined to avoid escalation and drive talks toward a “mutually beneficial” agreement, the report said.
India’s Ministry of Commerce said bilateral goods and services trade topped $128 billion in 2022-23, up 7.7 per cent from the previous year.
Some policymakers and experts argued that a sudden change in the US stance toward India is a direct result of Prime Minister Narendra Modi’s visit to China for the Shanghai Cooperation Organisation (SCO) summit last month.
Last week, in an exclusive interview with IANS, Congresswoman Deborah Ross termed PM Modi’s meetings in China as a “smart move” to send a message to the United States that “he has options.
Analysts said that the potential impact of US tariffs was cushioned by India’s strong domestic fundamentals, robust domestic consumption and GST 2.0 reforms. They also maintain that Indian markets have accounted for tariff uncertainty and are now focusing on underlying economic fundamentals.
Earlier, India and the US, at a high-level official meeting held in New Delhi, amid the thaw in the relations between the two countries, decided to intensify efforts to achieve an early conclusion of a mutually beneficial trade agreement.
A team of officials from the office of the United States Trade Representative, led by Chief Negotiator for India-US Bilateral Trade Agreement negotiations, Brendan Lynch, arrived in India. They held discussions with a team of Indian officials, led by Special Secretary, Commerce, Rajesh Agrawal.
(IANS)
