Shikha Tomar , Anupam Manur & Anisree Suresh
India-US Trade Fact Sheet
India and Australia signed an early harvest Free Trade Agreement in April 2023 to open new markets for exporters and service suppliers from both countries. The Australia-India Economic Cooperation and Trade Agreement (ECTA) is considered one of the critical pre-Free Trade Agreements signed between two key markets in the Indo-Pacific region with strong economic complementarities. The ECTA provides competitive tariff elimination and tariff reduction on a wide range of goods and services for both countries. It is expected to improve the economic integration of both countries and supply chain resiliency in the Indo-Pacific region.
The India-US relationship has strengthened, especially in the last three decades, due to increased cooperation in strategic sectors such as defence and technology, shared interests in economic prosperity and strategic convergences (with occasional divergences) in geopolitical affairs. Washington and New Delhi have built a relatively consistent relationship despite leadership changes on both sides. The relationship is conventionally founded on pillars such as shared democratic values (because of which the US identifies India as a ‘natural ally’), cooperation against China and joint contributions to global economic growth.1 However, their trade relations can be characterised by a trend of progression punctuated by points of contention, notably pertaining to tariffs.
The US is India’s largest trading partner, and India is ranked the 10th largest trade partner of the US, with Mexico, Canada, and China among the top 5 (refer to Table 1). The US is the only trading partner (among the top 10) with which India has a trade surplus.
No comments:
Post a Comment