India-US Bilateral Trade Relations
Commerce Minister Piyush Goyal emphasized the Indian government's commitment to strengthening ties with the new US administration under President-elect Donald Trump.
- India has maintained strong bilateral relations with past US administrations under leaders like Barack Obama, Donald Trump, and Joe Biden.
- Concerns are present regarding potential tariffs from the US targeting India, along with China, Mexico, and Canada.
Impact on Indian Exports
- The Research and Information System for Developing Countries (RIS) warned of susceptibility in consumer goods exports, such as pharmaceuticals, gems and jewellery, and marine products, to US tariffs.
- India's exports in consumer goods to the US amounted to $26.6 billion, representing a significant portion of the bilateral trade valued at $29.5 billion.
- The US accounts for 18% of India's exports, a rise from 10% in 2010–11.
- India's export basket to the US encompasses textiles, electronics, and engineering.
Export Projections
Goyal expressed optimism despite global challenges, projecting exports will exceed $800 billion in FY25, an increase from $778 billion in the previous year.
Challenges for Developing Countries
Goyal noted the strain on developing and least developed countries (LDCs) due to the forex crisis and ongoing impacts from the COVID-19 pandemic.
Electric Vehicles (EVs) in India
Goyal highlighted advancements in the EV sector, stating companies agree no further subsidies are needed post the existing regime.
- EVs are supported under the Production Linked Incentive (PLI) scheme, approved with a budget of 25,938 crore for five years.
- EV sales in 2022 reached approximately 10 lakh units, with Tata Motors leading in passenger EVs.
