The Aayog in its third version of ‘Commerce Watch Quarterly' stated there shall be important alternatives for India within the US markets each by way of the variety of merchandise and quantity of the US market.
“Constructing on the mannequin of the India-UK settlement, India ought to pursue a services-oriented commerce take care of the US, inserting robust emphasis on key sectors equivalent to data expertise, monetary companies, skilled companies, and schooling,” it stated.
The federal government assume tank stated the settlement ought to embody strong provisions for digital commerce, making a framework for enhanced cross-border service supply. The Aayog additionally emphasised that India should advocate for improved visa entry for its professionals, notably beneath H-1B and L-1 classes.
“This could embody provisions for intra-corporate transferees and impartial service suppliers, that are essential for sustaining India's aggressive edge within the world companies business,” it stated.
With rising world demand for Digitally Delivered Providers (DDS), the Aayog stated India ought to search agency market entry commitments from the US in high-growth areas equivalent to cybersecurity, synthetic intelligence, telecom, and design companies. “Leveraging India's strengths in these sectors will help improve bilateral commerce and innovation-led development,” it stated. Observing that regulatory obstacles equivalent to inconsistent knowledge compliance and mental property issues hinder Indian service exports, the Aayog stated joint efforts between India and the US are wanted to simplify licensing procedures and tackle cross-border knowledge circulation points, enabling smoother market entry for Indian corporations.
The federal government assume tank additionally stated that to develop skilled alternatives, India ought to push for broader Mutual Recognition Agreements (MRAs) that cowl a wider vary of professions, together with engineers, architects, and healthcare staff.
“These agreements would streamline certification processes and facilitate the mobility of Indian professionals to the US,” it stated.
In line with the Aayog, India ought to give attention to diversifying its commerce companions and turning into integral to bigger world provide chains and manufacturing networks.
“Quick-tracking free commerce agreements, time-bound negotiation roadmap, is important,” the Aayog stated, including that these agreements ought to prioritise the discount of non-tariff obstacles and facilitate smoother commerce in companies, a key energy for India.
Concurrently, the Aayog stated deeper commerce engagement with nations equivalent to Australia, Japan, South Korea, and ASEAN nations might be extremely useful, particularly in sectors the place India's export strengths, equivalent to prescribed drugs, cars, and IT, match their import wants.
“Moreover, pivoting in the direction of African markets by growing a structured India-Africa commerce hall targeted on prescribed drugs, schooling companies, IT, and cost-effective equipment will faucet into the rising demand and develop India's export footprint into rising areas,” it stated.
In the meantime, an Indian commerce ministry workforce has reached Washington for an additional spherical of talks on the proposed bilateral commerce settlement (BTA), which is able to start on Monday.
The go to assumes significance as either side should iron out points in sectors like agriculture and cars. It's also necessary because the US has additional postponed the imposition of extra tariffs on a number of nations, together with India, till August 1.
Earlier this month, the Indian workforce was in Washington for talks, with negotiations happening from June 26 to July 2. The workforce has as soon as once more reached the US for negotiations. India has hardened its place on the US demand for responsibility concessions on agri and dairy merchandise.
New Delhi has, to this point, has not given any responsibility concessions to any of its buying and selling companions in a free commerce settlement within the dairy sector. India is in search of the elimination of this extra tariff (26 per cent). It's also in search of the easing of tariffs on metal and aluminium (50 per cent) and the auto (25 per cent) sectors.
In opposition to these, India has reserved its proper beneath the WTO (World Commerce Group) norms to impose retaliatory duties. US President Donald Trump introduced heavy tariffs on a lot of nations, together with India, on April 2. Nevertheless, it was quickly postponed for 90 days till July 9 and later to August 1.
The 2 nations want to conclude talks for the primary tranche of the proposed bilateral commerce settlement (BTA) by fall (September-October) this 12 months. Earlier than that, they're in search of an interim commerce pact.
