Impact of India and US meet on their Strategic Trade Relations

Trade relations between the United States and India have been significant and continue to evolve. As two of the world's largest economies, their economic ties play a crucial role in shaping global trade patterns and geopolitical dynamics. The bilateral trade volume between the US and India has been on an upward trajectory, reaching significant levels. Trade in goods and services, including sectors like information technology, pharmaceuticals, energy, defense, and agriculture, has been robust. However, there is still untapped potential, and efforts to remove barriers and promote two-way trade are essential.

The latest visit of our honorable PM Narendra Modi to the United States from 21^st June to 24^th June has also opened numerous opportunities and avenues for the traders of both the nations. In this post we are going to discuss that how much beneficial was this meet for both nations.

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US AND INDIA TRADE RELATION TRENDS

As per US Trade Data reports for past few years, the trade to and from the United States with India from 2017 to 2021 are as follows:

As seen from the dataset, the bilateral trade between the nations is rising every year. This is because of the rising diplomatic and strategic relations between the nations.

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WHAT IMPACT IS MADE BY THE CURRENT INDIA-USA MEET?

After the most awaited visit of Honorable Prime Minister Narendra Modi to the United States, popularly known as the India-US Strategic Trade Dialogue (IUSSTD), both the nations are committed to initiate the new strategic trade dialogue between the two. The ongoing cooperation between both nations were studied and analyzed whereas discussions upon future regimes and other proceedings were made. India and the US both promised to share the best practices amongst each other to further strengthen the bond between them with respect to bilateral trade.

On the first day of the meet, the delegation of India was held by Foreign Secretary Vinay Mohan Kwatra, whereas Alan Estevez held the US delegation. The major points discussed throughout the meeting were as follows:

• The primary focus of the meeting was on the mutual collaboration of the governments of both nations that included growth of technological growth such as enhanced technological telecom, semiconductor devices, bio-tech, etc.
• Bilateral trade relations were another point of interest that was discussed during the meeting which aimed at promoting imports and exports between India and the US with major focus on boosting the US Import Data report.
• Building awareness about various industries and stakeholders is going to get more stronger with the help of various workshops and seminars in both nations.
• More stress would be put upon the trading of electronics, mechanical appliances, and automobiles to and from both countries. Also, multiple investing nations of the United States showed interest in Indian market and are getting ready to enter the nation’s market soon and start their operations in India too.
• Last but the least, through this historic visit of PM Narendra Modi to the USA, he is trying to decrease the dominance China over India and wants to build strong trade relations with the USA. This visit will surely hit China’s trade relations with India to a much extent.

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TECHNOLOGY- MAJOR INTEREST OF PM NARENDRA MODI

AS per latest US Export Data report and other crucial reports, the US was the major technological trade partner of India in the year 2022 and in the year 2023 also, the US is one the biggest technological supplier of India up till now.

Mr. Harsh V. Pant who is the vice president of the Studies and Foreign Policy working at Observer Research Foundation, New Delhi said that India is urging for more sophisticated and advanced technological tools and equipment as the nation is looking to grow at a rapid pace. With this, the US and India have agreed to collaborate and work with each other in domains of space and AI.  

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WHAT TRADEIMEX WANTS TO SAY…

The meeting between India and the United States will have a significant impact on their trade relations. Both countries are major global economies, and any developments in their trade ties can have wide-ranging implications. Some of them are:

• Reduction of trade and tariff barriers: With this visit, we forecast that the trade barriers and tariff rates would come down by some extent which will give a great relieve to the traders of both nations while trading with each other.
• Market access: Marketers of both countries would get a chance to discover new markets and with this, they can expand their trade and business to generate extra revenue and profits.
• Investments: The meeting could also focus on encouraging investments between India and the US. This can lead to increased foreign direct investment (FDI) flows in sectors such as infrastructure, technology, healthcare, and renewable energy. Strengthening investment ties can boost economic growth, create jobs, and foster innovation in both countries.
• Resolving Trade Disputes: Trade discussions may also address ongoing trade disputes or issues affecting specific industries. By finding common ground and resolving these disputes, both countries can foster a more stable and predictable trade environment.

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CONCLUSION

At the end, we would like to conclude that without any doubts the trade relations between the USA and India would be fruitful after this historic and major event. China would be hitting hard with this meeting as both nations would become reluctant to trade with it.

We hope you would have liked our content and got some knowledge about the trade structure between the United States and India. For more such amazing information about foreign trade, get in touch with TradeImeX.

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