New Delhi. Trade deal between India and America is going to happen very soon. According to reports, continuous talks are going on between the two countries, and consensus has been reached on most of the issues. Meanwhile, US President Donald Trump says that both the countries have come very close to the deal.
US President Donald Trump recently said that he will soon make a trade deal with India, while India’s Commerce Minister Piyush Goyal has indicated that the next month is going to be very important from the agreement point of view.
Special features of this deal…
Under this deal, America is going to make a big cut in import duty (tariff) on some major products coming from India. According to reports, the duty on Indian exports can be reduced from about 50% to 15-16%. Due to which Indian exports are expected to increase.
However, some sensitive issues are still under discussion. America wants India to cut down on buying crude oil from Russia. The news is that India has assured that Russian oil imports will be reduced gradually. At the same time, India is adamant on protecting the interests of its farmers, small industries (MSME) and domestic producers. India does not want the entry of American companies especially in agriculture and dairy industries. India wants to ensure that this agreement does not harm its local industries.
Benefits of America-India deal
If this agreement is reached then there can be a big change in the economic relations between India and America. India will get more access to the American market, especially the pharma, textile and IT sectors will benefit greatly. At the same time, America will get new opportunities in agriculture, energy and technology sectors in India’s huge consumer market.
According to experts, the trade deal between America and India will also act as a booster dose for the stock market. If the tariff level remains limited to 15-16 percent, then a strong growth can be seen in the Indian market. However, there are still many obstacles in the way of agreement. Also, sudden changes in America’s tariff policy and geopolitical issues (such as oil import from Russia) can affect this deal.
Trump again praised PM Modi
If everything goes as per plan, this agreement may be signed by the end of the year. The aim of both the countries is to increase mutual trade to 500 billion dollars in the coming years, this deal can prove to be an important step in that direction.
According to Trump, Indian Prime Minister Narendra Modi is ‘very strong at the business table’. However, the trade deal between the two countries has been finalized to a large extent. This statement of Trump is an indication that PM Modi has an important role in the trade agreement between India and America. Both countries are moving towards finalizing the Bilateral Trade Agreement (BTA). In which important issues like tariff, export-import and market access have been included for many months.