Indo-US bilateral ties has taken a new paradigm in spheres of trade, economy and security. Both the countries have strived for a common goal and an extraordinary momentum is developed driven by shared interests in promoting global stability, security and economic prosperity. Trade experts are gauging these trends and believe that widening of trade between the two countries will be continuing in the days ahead.
Most recently, US remained the top trading partner of India for the second consecutive fiscal in 2019-20. US is among the few countries which India has a trade surplus. According to the data of the commerce ministry, in 2019-20, the bilateral trade between the US and India stood at $88.75 billion as against $87.96 billion in 2018-19.
Earlier China was the top trading partner with India but the bilateral trade between India and China has dipped to $81.87 billion in 2019-20 from $87.08 billion in 2018-19.
India and the US are negotiating a limited trade pact with a view to iron out differences at trade front and boost commercial ties.
India is seeking relaxation in US visa regime, exemption from high duties imposed by the US on certain steel and aluminium products, and greater market access for its products from sectors such as agriculture, automobile, automobile components and engineering.
On the other hand, the US wants greater market access for its farm and manufacturing products, dairy items, medical devices, and data localisation, apart from cut on import duties on some information and communication technology products.
Professor at Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi says “Although the trade pact will be mutually beneficial for both the countries, India should be a bit cautious while negotiating the pact with the US in areas such as agriculture, dairy and issues related intellectual property rights”
US – China trade war and other geopolitical tensions in the global arena has indicated a closer ties between India and US. India has been giving tacit support to US against China in the South China sea issue. Several US companies are also exploring other avenues for their business after the sporadic eruption of Covid -19 pandemic as a result of anti – China sentiment globally. Global powers are of the view that China was the main culprit in the spread of Coronavirus in 2020.
Secondly, the Indian Prime Minister’s regular acquaintances with Indian Diaspora in America is believed to be among the major reasons that helped fostering the relations between India and America.
Context
The India-U.S. CEO Forum was held on 14th July 2020,through a telephonic conference. This is the fifth time the Forum has been convened since its reconstitution in December 2014 by the Governments of India and the USA. The Forum is an effective platform to highlight key issues that affect business entities and to identify areas for closer collaboration for mutual benefit of both economies.
The meeting was chaired jointly by Shri Piyush Goyal, Minister of Commerce & Industry and Railways and on the US side byMr. Wilbur Ross, US Secretary of Commerce. Senior government functionaries, including Dr. Guruprasad Mohapatra, Secretary, Department for Promotion of Industry and Internal Trade, Mr. Taranjit Sandhu, the Indian Ambassador to the US, and Mr. Kenneth Juster, the US Ambassador to India participated in the meeting.
