New Delhi. After the historic trade agreement with the European Union (EU), now another big good news can come for India from the global economic front. The ongoing talks between India and America regarding the long pending proposed trade agreement have now reached their crucial phase. According to official sources, very significant progress has been recorded in the trade talks between the two countries and both sides are very close to finalizing the agreement. However, the Government of India has not yet issued any official statement on this, but expectations regarding positive results have increased.
Official sources indicated on Wednesday that while on one hand India has taken the Free Trade Agreement (FTA) with the European Union to the final stage, on the other hand the pace of talks with the US has also been maintained. Experts believe that the India-EU agreement is not a substitute for trade relations with the US, as the US market remains strategically important for Indian exporters. According to sources, negotiators from both sides are moving towards a conclusion that will prove beneficial for the economies of both the countries.
It is noteworthy that last year the bilateral trade talks between India and America had slowed down due to some complex issues. In August, talks had hit a deadlock after the US administration proposed imposing heavy duties of up to 50 percent on some Indian products. This specifically included the 25 percent punitive duty imposed on purchases of Russian oil, immigration policy, and other tariff-related issues. Despite these challenges, recent progress shows that both countries are serious about resolving their differences. There was also a perception in the business world that India may have made the deal with the European Union in response to America’s harsh tariff policy, but sources have rejected this perception. It has been clarified that the agreement with the European Union is entirely based on mutual interests and benefits. India’s main objective is to increase its exports to both America and Europe, so that manufacturing within the country can be accelerated and new employment opportunities can be created.
The coming week is also going to be very important from the diplomatic point of view. Foreign Minister Dr. S. Jaishankar is likely to visit Washington next week, where he will attend a high-level meeting related to critical minerals. This meeting to be held on February 4 will be hosted by US Secretary of State Marco Rubio. US Ambassador to India Sergio Gore had also earlier hinted that India could be invited to join the US-led eight-nation grouping Pax Silica. This assurance of the Ambassador and the possible visit of the Foreign Minister has further strengthened the hope that the ice on disputed issues like tariffs and oil imports may soon melt and a historic trade agreement can come to fruition.
