Underlining his robust 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 mentioned that if his authorities is voted to energy within the upcoming US Presidential elections, it will 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, the USA is India’s high export associate with complete exports of $ 77.5 billion in FY24 and complete bilateral commerce was about $ 120 billion.
Whereas China remained India’s high buying and selling associate final fiscal, the USA took over this high slot within the months of January to June 2024, a latest report by the International Commerce Analysis Initiative revealed. “From January to June 2024, the USA turned India’s largest buying and selling associate, with complete commerce rising from $59.4 billion to $62.5 billion, a 5.3% enhance,” mentioned 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 development of 10.5%, the GTRI report revealed. China has nonetheless, remained India’s largest import provider within the first half of 2024 with imports growing from $46.2 billion to $50.1 billion. Nonetheless, 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 12 months 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 12 months, 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 reduce import duties on quite a few meals gadgets 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 diminished tariffs on sure US merchandise, together with chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents.
Nonetheless, there have been considerations as effectively. As an example, India’s sudden choice to ban exports of non white basmati rice in July final 12 months result in panic shopping for by shoppers within the US. Equally, India’s choice on a laptop computer import licensing coverage has additionally triggered considerations 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 12 months.