Underlining his sturdy stance on protectionism and indicating that he may impose excessive tariffs on Indian imports, former US President Donald Trump known as India a “very large abuser” of commerce ties with the US. This has as soon as once more thrown the highlight on the commerce relations between the 2 international locations.
Trump, who’s the Republican Presidential nominee, is reported to have stated that if his authorities is voted to energy within the upcoming US Presidential elections, it could have interaction in reciprocal commerce and would levy the identical tariff as charged by different international locations.
Certainly, larger tariffs by the US may show to be a problem for India given the muted export demand for a number of months amidst the worldwide slowdown. Extra importantly, america is India’s prime export companion with whole exports of $ 77.5 billion in FY24 and whole bilateral commerce was about $ 120 billion.
Whereas China remained India’s prime buying and selling companion final fiscal, america took over this prime slot within the months of January to June 2024, a current report by the World Commerce Analysis Initiative revealed. “From January to June 2024, america turned India’s largest buying and selling companion, with whole commerce rising from $59.4 billion to $62.5 billion, a 5.3% improve,” stated the report.
Exports to the US elevated from $37.7 billion in January-June 2023 to $41.6 billion in January-June 2024, reflecting a progress of 10.5%, the GTRI report revealed. China has nevertheless, remained India’s largest import provider within the first half of 2024 with imports rising from $46.2 billion to $50.1 billion. Nevertheless, imports from the US decreased by 3.7% to $ 20.9 billion between January to June 2024 from $21.7 billion in the identical interval a yr in the past.
Through the years, the US and India have labored on strengthening commerce ties and have been making an attempt to resolve key points and disputes bilaterally and on the World Commerce Group. In March this yr, India and the US introduced a mutually agreed resolution and submitted a notification to the WTO’s Dispute Settlement Physique in a dispute round India’s measures in regards to the importation of sure agricultural merchandise. In February, India minimize import duties on quite a few meals objects together with frozen turkey, cranberries and blueberries, according to the settlement with the US in September 2023 to resolve the lengthy standing dispute.
Beforehand in June 2023, India and the US had additionally agreed to terminate six excellent disputes on the WTO. At the moment India had lowered tariffs on sure US merchandise, together with chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents.
Nevertheless, there have been issues as effectively. As an example, India’s sudden choice to ban exports of non white basmati rice in July final yr result in panic shopping for by customers within the US. Equally, India’s choice on a laptop computer import licensing coverage has additionally triggered issues amongst a number of nations together with Japan, China and the US. The problem was additionally raised by the US Commerce Consultant Katherine Tai final yr.