NEW DELHI: After LNG , govt is exploring the possibility of increasing fertiliser imports from the US as it seeks to address US President Donald Trump 's concerns over the trade balance being in India's favour.
The move will also help India reduce its dependence on countries, such as China and Russia, which are among the top sources of shipments. In fact, like oil, fertiliser imports from Russia shot up, following sanctions on Moscow in the wake of the Ukraine war. As a result, India's trade deficit with Russia grew manifold.
India relies heavily on imported fertilisers, valued at $8.3 billion during the last financial year, with the US having a minuscule share, with the value of shipments pegged at $300,000. Last year, India had a trade surplus of over $41 billion with the US, while its goods imports were valued at $86.5 billion.
While the proposed bilateral trade agreement with the US will focus on bridging the trade gap by lowering tariffs, govt is also looking at importing more American goods, including defence equipment and oil and gas.
India is hoping that in return for items of America's interests, including automobiles, whiskey and farm goods, it will be able to get better access for its labour-intensive exports, such as leather and textiles products.
Sixteenth Finance Commission chairman Arvind Panagariya said a deal with the US will put India "incredibly favourably", helping it attract investment and boost manufacturing, while flagging labour and land reforms.
"India, itself, if it actually successfully negotiates a trade agreement with the US, will open a door a little wider to having an agreement with the EU and UK, that will place India in the global trade equation incredibly favourably," he said at an event organised by Isaac Centre for Public Policy . He said the trade restrictions by the US on China, Vietnam, and Cambodia will place India in a favourable position.
The move will also help India reduce its dependence on countries, such as China and Russia, which are among the top sources of shipments. In fact, like oil, fertiliser imports from Russia shot up, following sanctions on Moscow in the wake of the Ukraine war. As a result, India's trade deficit with Russia grew manifold.
India relies heavily on imported fertilisers, valued at $8.3 billion during the last financial year, with the US having a minuscule share, with the value of shipments pegged at $300,000. Last year, India had a trade surplus of over $41 billion with the US, while its goods imports were valued at $86.5 billion.
While the proposed bilateral trade agreement with the US will focus on bridging the trade gap by lowering tariffs, govt is also looking at importing more American goods, including defence equipment and oil and gas.
India is hoping that in return for items of America's interests, including automobiles, whiskey and farm goods, it will be able to get better access for its labour-intensive exports, such as leather and textiles products.
Sixteenth Finance Commission chairman Arvind Panagariya said a deal with the US will put India "incredibly favourably", helping it attract investment and boost manufacturing, while flagging labour and land reforms.
"India, itself, if it actually successfully negotiates a trade agreement with the US, will open a door a little wider to having an agreement with the EU and UK, that will place India in the global trade equation incredibly favourably," he said at an event organised by Isaac Centre for Public Policy . He said the trade restrictions by the US on China, Vietnam, and Cambodia will place India in a favourable position.
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