Where is India-US trade deal stopping? What is not being agreed on? Learn full details

India US Trade Deal: The time limit to implement tariff from America has now come close. On August 1, it will come into force to countries around the world, who have not made any separate deal with America. Recently, many countries including Britain-Japan have announced a trade deal with the US. There has been extensive discussion on the trade deal with India for almost a month, but no positive results have been reached yet.

In such a situation, the question is arising that where did the screw get stuck about the trade deal between the two countries? Which is the demand of America, on which there is no agreement between the two countries? Come, let’s know in detail what the situation is:

Why delay in India-US trade deal?

In fact, in an interview to CNBC, American Trade Representative Jamison Greer said that both countries still need more talks on the trade deal, as it is not yet complete. He further said that the India-US trade deal looks very close, but it is not so easy due to India’s traditional market protectionist policy. Greer says that India has shown interest in opening its market in some sectors, but now it will have to be seen how India is ready to move forward for this agreement.

On the other hand, Union Commerce Minister Piyush Goyal said that India is moving forward on a fast trade deal with the US. He further said that the US team will come to India in August and the proposed trade agreement will be next round.

Where is not being agreed?

One of the reasons for delay in India and US trade deals is the rates of high tariffs installed by the US on alyminium and copper. On one hand, India seeks relief from fifty percent tariffs on steel and aluminum and 25 percent tariffs installed in the auto sector. At the same time, India is not in favor of giving exemption in custom duty to America on dairy and agricultural products, because it will directly affect the dairy sector. Farmers may have to bear the brunt of this.

Along with this, India wants to reduce the rates of tariffs on things like banana, shrimp fish, shoes, plastic and handicrafts. At the same time, America is also pressurizing India to reduce the tariffs above Petrochemicals, Dairy Items, Dry Fruits, Trains and Industrial goods above.

In the year 2024, bilateral trade between India and America has been around $ 129.2 billion. Of these, American was exported to $ 41.8 billion in India, while India exported $ 87.4 billion to America. In such a situation, America’s trade deficit with India was $ 45.7 billion last year.

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