New Delhi, February 3: India and the United States have finalized a trade agreement. Tensions had escalated during President Donald Trump‘s second term, with the US imposing tariffs of 25% on India and an additional 25% due to oil purchases from Russia.
Negotiations for a trade deal stalled last year. However, with the recent agreement, experts are sharing diverse opinions. Foreign affairs expert K.P. Fabian stated, “I previously mentioned that Prime Minister Modi and Trump needed to engage in discussions for our US-India trade deal. That conversation has now occurred. My reaction is mixed; it’s positive that some deals have been made, especially as our currency was declining. In geopolitics, if a country is not on good terms with the US and engages with others, its position weakens. Thus, strengthening ties with the US is crucial.”
Fabian further noted, “The provisions in the deal are not particularly favorable. President Trump has set tariffs at 18%. He desires zero tariffs on US exports to India, believing that their market is vast. Therefore, those wanting to enter their market must adhere to US regulations, despite the fact that the US holds only a 9% share in global imports.”
Former diplomat Mahesh Kumar Sachdeva described the agreement as a positive development. He emphasized that India is aware of its self-reliance and is confidently pursuing long-term trade agreements abroad. This strategy is deliberate. Existing trade agreements pressure Trump to maintain favorable terms with India, as failing to do so could harm the US and diminish its market presence in India.
Rick Rosso, chair of India and Emerging Asia Economics at CSIS, remarked, “Today is historic as the US and India announce the signing of a long-awaited bilateral trade agreement. This comes nearly a year after the initial announcement following a meeting at the White House. Despite heavy tariffs on Indian imports remaining until 2025, trade has remained robust.”
Market expert Sunil Shah expressed his anticipation for the trade agreement, calling it a significant sentiment booster. He stated, “This is a major trade deal, clearly demonstrating that the US, UK, and EU stand with you. This trade deal is undoubtedly a positive development. I would say it’s just the beginning. Just as we have agreements with the EU, we have now opened doors with the US. The more bilateral trade agreements we have, the more beneficial it will be for all involved. Trade agreements are advantageous for both sides; they always create a win-win situation. The absence of trade agreements or engagement leads to challenges.”
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My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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