India, U.S. Optimistic Of A Trade Deal Before Year-End, Says Senior Indian Diplomat
A gantry crane unloads containers from a cargo ship at the Port of Long Beach in Long Beach, California, U.S. (Photographer: Tim Rue/Bloomberg)

India, U.S. Optimistic Of A Trade Deal Before Year-End, Says Senior Indian Diplomat

Bookmark

India and the U.S. are “quite optimistic” that they will ink a trade deal before the end of this year, a senior Indian diplomat has said.

Manoj Kumar Mohapatra, Minister (Commerce) in the Embassy of India in Washington, said in New York on Wednesday that Commerce and Industry Minister Piyush Goyal will visit the U.S. next week during which he will hold discussions over the trade deal.

“We have held several discussions with the U.S. Trade Representative office and Ambassador Robert Lighthizer for the trade talks,” Mohapatra said at an event held in the Consulate General of India, New York.

During his U.S. trip, Goyal will visit both Washington and New York.

“We will be continuing our trade talks. We are quite committed that before the closing of this year, we will be having an agreement which will be giving a boost to further our trade relationship,” Mohapatra said.

Highlighting the strong India-U.S. relationship and the potential for bilateral ties in the area of trade to increase substantially, he said, “both the sides are quite optimistic that the trade deal would be inked before the end of the year”.

Mohapatra was speaking at the launch of the North East New York Regional Chapter of the Indian American International Chamber of Commerce, where Federal Communications Commission Chairman Ajit Pai was the Chief Guest.

He said currently the Indo-U.S. bilateral trade stands at about $150 billion and “this is increasing by 10 percent every year”.

With the Narendra Modi government targeting to make India a five trillion dollar economy by 2024, Mohapatra said the next-generation cooperation between the two countries will be in areas such as artificial intelligence and data mining. He also underscored the strong defence cooperation between the two largest democracies.

India's exports to the U.S. in 2018-19 stood at $52.4 billion, while imports were $35.5 billion.

India received foreign direct investment worth $3.13 billion from the U.S. in 2018-19, higher than $2 billion in 2017-18.

In September, U.S. President Donald Trump had said that they will soon have a trade deal with India to boost economic ties between the two nations.

“I think very soon. We are doing very well. (U.S. Trade Representative) Robert Lighthizer who is right here negotiating with India ... I think, very soon we will have a trade deal,” Trump had said in response to a question by PTI ahead of his bilateral meeting with Prime Minister Narendra Modi.“We will have a larger deal down the road...but we will have a trade deal,” Trump had said.

Also read: Broad Issues Of India-U.S. Trade Deal Almost Resolved, Says Piyush Goyal

India is demanding exemption from high duties imposed by the U.S. on certain steel and aluminium products, resumption of export benefits to certain domestic products under their Generalised System of Preferences, greater market access for its products from sectors, including agriculture, automobile, auto components and engineering.

Also read: India-U.S. Trade Negotiations Going In Full Speed, Says Nirmala Sitharaman

The U.S., on the other hand, wants greater market access for its farm and manufacturing products, dairy items and medical devices, and cut on import duties on some information and communications technology products.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.