US-India Trade Relations Amid Global Trade Uncertainty
The visit of US Vice President J D Vance to India is taking place during a period of global trade tensions, highlighting the significance of political backing for a potential US-India trade agreement.
Progress in Trade Negotiations
- Both countries have made "significant progress" in trade negotiations.
- The upcoming visit by Indian officials to the US, led by Chief Negotiator Rajesh Agarwal, focuses on negotiating 19 chapters, including:
- Tariff and non-tariff barriers.
- Rules of origin.
- The White House aims to enhance bilateral trade and supply chain integration in a balanced and mutually beneficial manner.
Global Trade Context
- More than 75 countries have expressed interest in new trade deals with the US.
- US Treasury Secretary Scott Bessent prioritizes India, along with Japan, South Korea, Australia, and the UK, for new trade deals.
- Japan has already engaged in discussions with US officials, expanding the scope to include non-tariff issues.
- South Korea is also holding talks with the US.
- US-China relations: President Trump mentions "nice conversations" with China, but Beijing warns against countries entering trade deals with the US at its expense.
India-China Trade Relations
- In 2023-24, India-China bilateral trade reached $118.4 billion.
- China remains central to global manufacturing supply chains.
- A trade deal with the US should not be viewed as adversarial to China.
- The complex trade dynamics require careful handling by India.
