According to the U.S. government, New Delhi`s trade surplus with Washington narrowed to $24.3 billion in 2016 and reached $23.3 billion in 2019. According to the Indian authorities, imports from the United States reached $35.7 billion in the G20, up 0.3%, despite an overall decline of 7.8% in merchandise imports. Major purchases include mineral fuels and related goods ($8.3 billion), gemstones and jewellery ($6.2 billion) and capital goods ($4.7 billion). India`s merchandise exports to the United States totaled $53 billion, up 1.3% from a year earlier. Major export segments include gemstones and jewellery ($9.3 billion), pharmaceuticals ($6.3 billion) and apparel ($4.2 billion). Financial Express is on Telegram. Click here to join our channel and keep up to date with the latest Biz news and updates. Trade and Industry Minister Piyush Goyal said Tuesday that the two countries are close to concluding a trade deal that could include 50-100 goods and services. This agreement should be close to equilibrium in terms of trade value for both partners and be likely to be followed by discussions on a possible free trade agreement (FTA). Under the limited deal, India will likely reduce tariffs on high-end bikes like Harley Davidson, promise better market access for agricultural products, including cherry, and soften its initial offer to ease price caps on medical devices, a source in LA said. India is ready to apply the commercial margin on coronary stents and kneeling implants from the first point of sale (prices to the most stock-rich) instead of putting them on landing prices, as originally proposed, in order to make them more attractive to American companies like Abott. However, India says it will play its part in reducing the trade deficit by buying more U.S.
products, including oil and gas. According to Indian government officials, India`s trade surplus with the United States has grown from $24 billion in 2016 to $20 billion today. Washington accuses New Delhi of creating a wide range of trade barriers that have a negative impact on U.S. trade. According to media reports, India could impose higher tariffs on imports of U.S. products in response to Trump`s recent step. Among the criteria for inclusion in the GSP program are factors such as ensuring fair and equitable access to the U.S. market, compliance with arbitration awards for U.S. citizens or businesses, combating child labour, ensuring adequate and effective protection of intellectual property, and respect for the rights of internationally recognized workers. In a blow to India`s newly elected administration, U.S. President Donald Trump ended India`s nomination as a development beneficiary under the SPG`s main trade program (Generalized System of Preference) effective June 5.
The White House said in a statement that India had failed to give assurances to the United States that it would grant “fair and reasonable access” to its markets, which is why the Trump administration has taken action. India`s trade surplus with the United States has sheded down, as India has explained in importing oil and gas from the largest economy, which India has pointed out. The two countries` attempt to develop a preferential trade pact is in line with the starting line given by U.S. President Donald Trump and Prime Minister Narendra Modi earlier this year, during Trump`s visit to India, as a full-fledged free trade agreement (FTA) seemed elusive due to differences on a wide range of issues. The United States is India`s largest trading partner, with $88.74 billion in bilateral trade in 2019/20. “India, like the United States and other nations, will always maintain its national interest in these matters,” the government said Saturday in a joint statement.