India and the United States recently held a bilateral meeting to discuss various trade issues and strengthen their strategic partnership. The meeting, which took place in New Delhi, saw both sides stressing the need for an early resolution of pending export-control issues. The discussions were held in the backdrop of the strategic guidance provided by the leaders of both nations.
The meeting was attended by high-level officials from both countries, including the Indian Commerce Secretary, Anup Wadhawan, and the US Under Secretary of Commerce for International Trade, Gilbert Kaplan. The discussions focused on ways to enhance trade and investment between the two nations and to address any barriers that may hinder the growth of their economic ties.
India and the US have a long-standing trade relationship, with the US being one of India’s top trading partners. In 2019, the total bilateral trade between the two countries reached a record high of $142.6 billion, with the US being India’s largest export market. However, there are still some unresolved issues that have been a cause of concern for both nations.
During the meeting, India highlighted the need for an early resolution of pending export-control issues, which have been a major hurdle in the trade between the two countries. These issues include the Generalized System of Preferences (GSP) and the tariff on steel and aluminum imposed by the US. India stressed the importance of addressing these issues to further strengthen their economic ties and achieve the goal of $500 billion in bilateral trade.
The GSP is a preferential trade program that allows developing countries to export certain products to the US at lower or zero tariffs. India was the largest beneficiary of this program, with exports worth $6.3 billion in 2018. However, the US terminated India’s designation as a beneficiary country under the GSP in 2019, citing concerns over India’s trade barriers. This has been a major setback for India and has affected its exports to the US.
India also raised concerns over the tariff on steel and aluminum imposed by the US, which has adversely affected its exports to the US. India has been seeking an exemption from these tariffs, which were imposed by the US in 2018 under the Section 232 investigation. India argued that its exports do not pose a threat to the US national security and requested the US to consider its request for an exemption.
Both sides also discussed ways to enhance cooperation in the fields of energy, healthcare, and defense. India expressed its interest in increasing imports of energy products from the US, which would help reduce its trade deficit with the US. The two countries also discussed the possibility of collaboration in the healthcare sector, with India seeking investments from the US in its pharmaceutical and medical devices industry. The defense sector was also a major focus of the discussions, with both sides exploring opportunities for joint ventures and technology transfer.
The meeting also highlighted the strategic guidance provided by the leaders of both nations, Prime Minister Narendra Modi and President Joe Biden. The leaders had a virtual summit in September 2021, where they discussed ways to enhance their strategic partnership and strengthen their economic ties. The leaders had also agreed to work towards achieving the goal of $500 billion in bilateral trade.
The bilateral meeting between India and the US has once again reiterated the strong ties between the two nations. The discussions were held in a friendly and cooperative atmosphere, with both sides expressing their commitment to further strengthen their economic ties. The early resolution of pending export-control issues would not only benefit the two countries but also contribute to the global economy. The strategic guidance provided by the leaders of both nations has set the tone for a stronger and more prosperous partnership between India and the US.
