News Highlight
India and the US have launched Joint Statement on their 5th Ministerial level Commercial Dialogue.
Key Takeaway
- The Union Minister of Commerce and Industry of India and The US Trade Representative Ambassador co-chaired the 13th Ministerial-level meeting of the India-US Trade Policy Forum (TPF) in Washington, D.C., in January 2023.
Overview of Joint Statement
- India-US Strategic Partnership
- Both discussed the strategic cooperation between India and the United States.
- As well as economic and commercial interaction between the two countries.
- Via the Initiative on Critical and Emerging Technologies (iCET) and the Indo-Pacific Economic Framework (IPEF), it comprises.
- MoU on Semiconductor Supply Chain
- To strengthen cooperation in the semiconductor supply chain and innovative partnerships, both countries signed an MoU.
- Strategic Trade Dialogue
- It will look at export controls, measures to improve high-tech commerce, and how to encourage technology transfer between the two countries.
- Environmental Technology Business Development Mission
- In 2024, the US will deploy a senior government official-led Clean Energy and Environmental Technologies Business Development Mission to India.
- The trade mission would be an excellent opportunity to strengthen US-Indian corporate ties in;
- Grid modernisation and smart grid solutions
- Renewable energy
- Energy storage
- Hydrogen
- Liquefied natural gas
- Environmental technology solutions.
- Talent, Innovation, and Inclusive Growth
- Small firms and entrepreneurs are the lifeblood of the US and Indian economies.
- There is a need to enable collaboration between the two nations’ SMEs and to foster innovation ecosystems.
- In this regard, both parties announced the formation of a new Commercial Dialogue Working Group on Talent, Innovation, and Inclusive Growth.
- Global Biofuels Alliance
- Both parties agreed to collaborate in the Global Biofuels Alliance and the development and implementation of hydrogen technology.
- US-India Energy Industry Network
- The two countries announced the US-India Energy Industry Network (EIN) as a comprehensive platform for boosting US industry participation in the Clean EDGE Asia programme.
- The flagship effort of the US government is to expand sustainable and secure clean energy markets throughout the Indo-Pacific region.
India and US Trade Relations
- India-US bilateral partnership today encompasses a whole host of issues, including;
- The response to Covid-19
- Economic recovery post-pandemic
- The climate crisis and sustainable development
- Critical and emerging technologies
- Supply chain resilience
- Education
- Defence and security.
- Bilateral commerce in goods and services between the two countries has nearly doubled since 2014 and is expected to top USD 191 billion by 2022.
- In 2022, the United States will be India’s largest trading partner.
- The United States is India’s greatest exporter and trade partner, whereas India is the US’s ninth largest trading partner.
- Both countries hope to achieve USD 500 billion in bilateral commerce by 2025.
- The United States is India’s third largest investor, with a total FDI intake of USD 56,753 million from April 2000 to September 2022.
The India-United States Trade Policy Forum (TPF)
- About
- The Trade Policy Forum (TPF) is the main forum for resolving India-US trade and investment concerns.
- The TPF was formed in July 2005 to address trade and investment challenges.
- Objectives
- To encourage commerce and investment between the two countries.
- Develop and implement trade policies under international commitments using transparent methods.
- Create an environment that encourages technical collaboration and creativity.
- Encourage inclusive economic growth and employment creation in India and the United States.
- The Trade Policy Forum is co-chaired by India’s Minister of Commerce and Industry and the United States Trade Representative.
Pic Courtesy: freepik
Content Source: PIB