Significant Progress in India-America Trade Deal: Will the Outcome of Discussions Favor India?
Recently, global discussions have intensified regarding the commercial relationship between India and America. In this context, at a time when America has imposed a 50 percent tariff on India, new trade discussions have begun between the two countries, signaling positive outcomes.
An Indian official from the Indian government has indicated that trade negotiations with America are highly likely to conclude positively. This could mean that America might remove or significantly reduce the tariffs imposed on India. There are also reports that America may quickly decide on the removal of additional tariffs.
Key Remarks by Commerce and Industry Minister Piyush Goyal:
India’s Commerce and Industry Minister, Piyush Goyal, has made a significant statement regarding India-America relations, instilling new hope in global India-America trade discussions. He stated that trade agreement negotiations between India and America are progressing in the right direction, and crucial results may emerge soon. Goyal further informed that a fruitful 7-hour discussion took place between the two countries on September 16, and India is now awaiting America’s response.
The Minister also clarified that strict restrictions have been imposed on Indian exporters using the territory of the United Arab Emirates (UAE) to export to America.
America’s Imposed Tariffs and Their Reasons:
At the center of the discussions was America’s imposition of a 25 percent tariff on India, followed by the announcement of an additional 25 percent tariff. The reason for this additional 25 percent tariff was India’s purchase of oil from Russia.
However, following this decision, the then US President Donald Trump realized that the same oil for which tariffs were imposed on India was also being purchased in large quantities by Europe. As a result, Trump himself admitted that both India and China were buying the oil they were fighting over.
Shift in America’s Discontent: From India to Europe
In this situation, the target of America’s discontent has now shifted from India to Europe. While India was their target earlier, their attitude towards Europe has now become stringent, and their behavior towards India is said to be normalizing.
Although the situation was expected to become clear by October, an additional few weeks of waiting may now be necessary. This means that the burden of the 50 percent tariff on India still remains, and its resolution may take a little more time. However, it is clear from Piyush Goyal’s statement that both countries are moving towards a strong, comprehensive, and strategic partnership.