Now, there is fresh optimism that the US and India would sign a free trade agreement (FTA).
The bond between President Trump and Prime Minister Modi has been seen by former Foreign Secretary Harsh Vardhan Shringla as a significant step in this direction.
Fresh Hopes for Trade
Shringla is optimistic that the two nations may quickly come to a mutually advantageous deal, even if the US has imposed a 50% tax.
There are fresh hopes as a result of the United States and India’s Free Trade Agreement (FTA). According to Harsh Vardhan Shringla, a Rajya Sabha MP and former foreign secretary, Prime Minister Narendra Modi and US President Donald Trump‘s close connection might be a powerful move in this direction.
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Partnership Fuels Trade Talks
Shringla is certain that the two nations can quickly come to a mutually advantageous arrangement, even with the 50% tariff in place. The US has been imposing high tariffs on Indian commodities at the time of this announcement. This tariff may have an impact on a number of Indian industries.
Shringla said that the two presidents had a long and enduring connection, citing occasions like “Howdy Modi” and “Namaste Trump”. Ever since Trump’s first term, this bond has grown stronger. He conveyed the expectation that this partnership will facilitate the speedy and improved completion of the trade deal.
What effects will tariffs have?
India’s exports are now subject to a 50% tax from the US. A total of $86.5 billion worth of commodities will be subject to this levy, according to a research by the Global Trade Research Initiative (GTRI).
Exports may decline by 70% as a result, particularly in labor-intensive industries like textiles, jewelry, and shrimp. Nonetheless, industries that generate $27.6 billion in exports, including electronics, medications, and active pharmaceutical ingredients (APIs), will continue to enjoy tariff-free status.
India is working to lessen the effects of this tax, according to Shringla. They are looking into other markets for this.
India already has free trade agreements with the United Arab Emirates (UAE), Australia, and the United Kingdom. An agreement with the European Union (EU) is also coming soon. India may reroute its exports in different ways with the aid of these new channels.
“There is still trust in solid connections.”
Shringla said she was confident in the close ties between America and India. According to him, the two nations’ similar ideals and values are what make their partnership strong.
This strength will make navigating any ups and downs simpler. He said that the selection of Sergio Gor as the new ambassador to the US is a positive step that would strengthen relations between the two countries.
India is also trying to increase its capabilities. India is working closely with countries like the US in areas like semiconductors and rare earth minerals. These technological areas will be essential to India’s growth during the next 20 years, according to Shringla. In order to strengthen its strategy even further, India is moving quickly in these sectors.
Future expectations
Shringla believes that the tight links between the two countries and the friendship between Modi and Trump will help mitigate the possible effects of US tariffs on some Indian businesses. India would be able to weather these difficult times by investing in new technologies and looking for other markets. Furthermore, a possible free trade agreement may open up new doors for both countries.