India and the US are likely to finalize a $10 billion trade deal in February when US President Donald Trump is expected to visit New Delhi.
Crux of the Matter
Meetings on the trade deal were also held in Davos during the World Economic Forum. A six-member team from the US administration recently met Piyush Goyal to discuss the deal. The deal is expected to be finalized after the meeting of United States Trade Representative (USTR) Robert Lighthizer and Union Commerce Minister Piyush Goyal.
In order to reduce the price of medical devices, India had insisted US for producing medical devices in India. This issue of medical devices has now been resolved to give a green signal to the massive trade deal.
India wants restoration of benefits under the Generalized System of Preferences (GSP). Under GSP, some products can enter the US market duty-free if the beneficiary developing country meets the eligibility criteria set by the US Congress. In 2019, India was removed from GSP and in retaliation, India had slapped higher tariffs on a list of US products.
Curiopedia
India is the 9th largest trading partner for the USA. Major items imported from India include information technology services, textiles, machinery, gems and diamonds, chemicals, iron and steel products, coffee, tea, and other edible food products. Major American items imported by India include aircraft, fertilisers, computer hardware, scrap metal, and medical equipment. The United States is also India’s largest investment partner, with a direct investment of $10 billion in power generation, telecommunications, ports, roads, Petroleum exploration and processing, and mining industries. U.S. goods and services trade with India totaled an estimated $142.6 billion in 2018. Exports were $58.7 billion; imports were $83.9 billion. More Info
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