INDIA–US TRADE RELATIONS

NEWS: Department-related Parliamentary Standing Committee on Commerce submitted its 200th Report on Evaluation of India–US Trade Relations.

Key Challenges

  • Rising service imports: Total India–US services trade increased from $40.53 bn (2014) → $98.52 bn (2024).
  • India’s services imports from the US are growing faster (18.68% CAGR) than exports (11.58% CAGR).
  • Tariff & non-tariff barriers may constrain bilateral trade and the $500 bn by 2030 “Mission 500” target.
  • US tariff mentioned in the report: 18%, compared with earlier 3%.

Key Recommendations

  • Trade Policy Forum: Time-bound monitoring of bilateral trade issues.
  • Bilateral Trade Agreement (BTA): Fast-track negotiations and simplify regulations.
  • Manufacturing: Strengthen Make in India, PLI, National Logistics Policy and PM Gati Shakti.
  • MSMEs: Create an Export Resilience Scheme with affordable credit and technical support.
  • Supplier Development Fund: Support product redesign, certification and integration into global value chains.
  • Export Invoice Discounting: Provide state-backed liquidity support to MSMEs.
  • Critical Minerals: Strengthen cooperation through NCMM, FORGE, IPEF and QUAD.
  • Friend-shoring: Integrate Indian firms into US supply chains in electronics, semiconductors and clean energy.
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