About India-US Trade Relations
- India- U.S shares a Comprehensive Global Strategic Partnership.
- U.S is India's largest export destination and among its top trading partners.
- Both countries have launched Mission 500 to achieve USD 500 billion in bilateral trade by 2030 through Bilateral Trade Agreement.
Key Highlights of Report
Challenges in India- US Trade | Recommendation |
Tariff Uncertainty: US tariffs (3% to 18%) and frequent policy changes hurt exports. | Conclude BTA: Resolve tariff and non-tariff barriers and achieve Mission 500 target. |
Non-Tariff Barriers (NTBs): Sanitary and Phytosanitary (SPS) measures, certification and customs norms increase export costs. | Enhance Competitiveness: Strengthen Production Linked Incentive (PLI) Scheme, Make in India, logistics, export infrastructure and innovation. |
MSMEs Vulnerability: Limited finance and compliance capacity restrict Global Value Chain (GVC) participation. | Support MSMEs: Expand export finance, quality certification, compliance support and GVC integration. |
Market Dependence & Sectoral Decline: Heavy reliance on US market and decline in labour-intensive exports. | Diversify Trade: Expand export markets, products and supply chains while strengthening key export sectors. |
Low Technology & High Costs: Weak Research and Development, limited value addition, high logistics costs and commodity price volatility reduce competitiveness. | Promote Technology & Investment: Boost cooperation in AI, semiconductors and clean energy while attracting Foreign Direct Investment (FDI). |
