With current talks for a bilateral trade agreement, India hopes for a suspension of reciprocal prices on imports that the United States should impose from April 2.
Official discussions between India and the United States on the proposed bilateral trade agreement began on Wednesday with senior officials from the two countries sitting at the table to start the discussions on the contours of the trade agreement, including the deadlines and conditions of reference. The two countries hope to finalize the first tranche of the agreement in the fall of 2025.
According to sources, India has already indicated products on which it is willing to reduce prices. These include a range of products from the United States, including cars such as electric vehicles, bikes and wines and alcohol as well as certain agricultural products from the United States.
Sources have declared that India is only bothering the initial offer as well as the current negotiations will give a stay of the reciprocal prices that US President Donald Trump plans to impose from next month.
A team of United States officials led by an assistant US trade representative for South Asia and the Central Brendan Lynch, as well as a team of US government representatives, are visiting India from 25 to 29 March.
“As indicated by the leaders of the two countries, India remains determined to work with the United States in the commercial and economic fields to improve prosperity and innovation in India and the United States, and deepen the integration of supply chains between the two countries. The visit.
After the visit of Prime Minister Narendra Modi at Washington DC to meet the American president, the two countries agreed to work on the BTA and deepen bilateral trade at $ 500 billion by 2030.
An Emkay Global Financial Services report said that India could potentially lose about 6 billion dollars (0.16% GDP) in exports to the United States (10% general prices), which increases to around $ 31 billion to 25% prices.
“Although the nature of the implementation of reciprocal prices is not clear, we believe that a large price at the country’s country is the most likely scenario, taking into account the complications concerning the prices of the sector / basic products,” he said. Although India can be among the most struck countries according to large reciprocal differentials, the main sensitive sectors of the car, pharmacy, electronics are much better placed than fearing it, while clothing and gems and jewelry are the most exposed.
Total exports from India to us during the 2010 financial year amounted to $ 77.5 billion (2.1% of GDP); The sensitive sectors that the identified ratio represent approximately 1.1% of GDP.
