donald trump
India is assessing US President Donald Trump’s ‘America First’ trade policy to assess its impact on bilateral trade with the US. Sources gave this information on Wednesday. India’s largest trading partner is America. After that the Government of India will make its strategy. Sources say that the Indian government will try to balance trade with Trump by increasing imports of American goods. Sources said the instructions given by the President’s Office White House to the US Trade Representative (USTR) is a positive development for countries like India. USTR has been asked to identify countries with which the US could negotiate agreements on a bilateral or sector-specific basis.
India need not worry
“We are studying and examining this memorandum,” the source said. We have to evaluate things before making any strategy. Just a casual read of it so far I don’t see anything we need to be worried about. Not every investigation of ours translates into action.” Along with this, the government is also waiting for confirmation of the appointment of key trade officials in America. The source said, “It will take some time to confirm. Discussion will take place once the appointments are confirmed. India and America are good trading partners.” According to the memorandum, USTR will identify countries with which the US can negotiate agreements on a bilateral or sector-specific basis to provide US export market access. He will make recommendations regarding such possible agreements.
A decision could not be taken on FTA
During Trump’s first term, India and the US had discussed a small trade agreement to boost economic relations. But after him, this was postponed during the tenure of Joe Biden because he was not in favor of Free Trade Agreement (FTA). According to international trade experts, considering the indications given in the memorandum, talks on India-US trade agreement can be resumed.
America is India’s biggest trade partner
Economic research institute GTRI has said that if the US imposes higher duties on domestic goods, India should respond with similar measures. The US was India’s largest trading partner with bilateral trade of $119.71 billion in FY 2023-24. This included exports of $77.51 billion, imports of $42.19 billion and a trade surplus of $35.31 billion.
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