India US Trade Talks: The tension between India and America due to tariffs (fees) is continuously increasing. The US government has recently imposed a high tariff of up to 50 percent on Indian goods exports, including 25 percent base tariff and additional 25 percent punitive fee. This additional fee has been levied by the US in the form of penalty imposed by India on purchasing crude oil from Russia.

However, after some positive indications received by US President Donald Trump recently, the talks between the two countries have started again. Earlier many rounds of talks were inconclusive, but now the situation seems to be changing.

NITI Aayog CEO BVR Subrahmanyam on Monday expressed confidence that India and the United States will soon have a mutually beneficial trade agreement. He said that both countries are committed to a bilateral agreement that is in the interest of the economies of both.

India needs to open its market: Subrahmanyam

Subrahmanyam said that India should reduce its fees and non-tariff barriers and make markets more open to increase competition in manufacturing sector. He made this statement during the release of ‘Trade Watch Quarterly’ report. He said, “The good thing is that both sides are still committed to the conversation. The talks were held last month, so we hope that we will get positive results soon.”

Significantly, in August, the US doubled the tariff over Indian goods to 50 percent. It also includes tariffs in the form of 25 percent panalty imposed to buy oil from Russia. After this move, tension between Delhi and Washington increased.

India described this American step as “inappropriate and indiscriminate”. Subrahmanyam said that these fees will not have a major impact till Christmas, but if there is no agreement by November, then there may be a serious impact in the export sector.

Economic shock will be deferred with agreement

He said, “We are currently in harm… 50 percent of our goods become expensive, which is difficult to stay in competition. But if the trade agreement is reached by November, then big disruption can be avoided.” Subrahmanyam also added that India’s trade deficit is still manageable, but there is an imbalance in it.

Overall, this tariff confrontation between India and the US is a challenge for both economies – but if the conversation moves in the right direction, the new trade agreement between the two countries can prove to be a positive sign in the global market.

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The Chemistry of PM Modi-Putin and Xi Jinping at the SCO Summit held in China has disturbed Trump. Soon after the SCO, Trump issued a statement defending his tariff move. He said that India has imposed the most tariffs on American goods in the world, while American markets are open for Indian products. Giving the example of Harley Davidson, he said that up to 200% tariffs were imposed on the motorcycle, due to which the company could not sell motorcycles in India. As a result, the company had to set up a plant in India so that the tariff could be avoided.

Xi Jinping, including Prime Minister Narendra Modi, Russian President Vladimir Putin, attended the SCO summit. This was the first time after the tariff was imposed by America, when the leaders of three big countries of the world appeared under one roof. After this, the manner in which Trump has targeted the tariff and targeted India is clearly visible. However, India has clearly stated that it is not going to come in front of America under any kind of pressure. During this time, trade talks between the two countries are also going on, in which no solution has been found so far.

The news is being updated …

India-Rus Trade Deal: There is a tussle between India and America about the trade deal at this time. US President Donald Trump has imposed 50 percent tariff on India. Meanwhile, Commerce and Industry Minister Piyush Goyal has given a big statement regarding the trade deal. Commerce and Industry Minister Piyush Goyal has clearly stated that India’s business talks are only on fairness and concrete basis, not under the pressure of any timeforce.

He made it clear that India will not finalize any deal in a hurry about the talks on the ongoing bilateral trade agreement (BTA). Union Minister Piyush Goyal said, ‘We never tie trade agreements within a deadline. Our goal is to make agreements good and beneficial for both countries. India is always ready for a deal based on equality and fairness.

‘Conversation with America is going on’

He informed that active talks are going on between India and America regarding bilateral trade agreement. Since March, five rounds of meetings have been held. However, the sixth round of talks on August 25 were postponed after the US government imposed a 50% fee on Indian products from August 27. The date of the next meeting has not been decided so far.

‘India is leading in the field of renewable energy’

He said at the 20th Global Sustainability Summit held on Tuesday (September 2) that India is leading the world in the field of renewable energy today. He informed that India is providing clean energy round the clock at the rate of only ₹ 4.60 to ₹ 5 per unit (about 5 cents), which is the cheapest in the world.

He further said, ‘Before 2014, electricity was very expensive and less in many parts of the country. At that time, people in some states had to buy electricity from Rs 12 to 13 per unit. But after the formation of the national grid, the situation changed and now in areas like South India, electricity is getting electricity at a cheaper rate almost before.

‘5 times expansion in solar energy’

He said that during the tenure of Prime Minister Narendra Modi, the renewable energy sector has made record progress. The initial target of solar energy was laid down 20 GW, which was increased to 100 GW and was also completed on time. He said that transparent auction and competition reduced solar energy rates from ₹ 7–8 per unit to ₹ 2 per unit.

US-India Trade: The American Custom Officer recently dismissed at least 15 mango shipments from India at several airports including Los Angeles, San Francisco and Atlanta due to disturbances in documents. This decision not only caused a loss of about $ 500,000 (about Rs 4.2 crore) to Indian exports, but the matter is also questioning Indo-US trade relations.

All these shipments were stopped on the basis of the mistakes of the document called PPQ203. This document shows that mangoes have obtained the required pest control radiation treatment. This process is under the supervision of the USDA officer in an authorized facility in Navi Mumbai. Although the exporters claim that the radiation process was completed correctly and without the PPQ203 document, the goods could not be loaded at the airport, the US border security agencies accused these forms of issuing these forms incorrectly and stopped the shipment.

Two options for exporters
American officials had given the option to Indian exporters to either destroy the shipment in the US or be sent back to India, but since the common mangoes are very bad fruit and excessive spending on return shipping, all exporters opted to destroy mangoes at the local level itself. One exporter said, “We are being punished for the mistake that we have not done.”

Impact on Indo-US trade agreement?
This case has come up at a time when India and America are trying to finalize the trade agreement. In the proposed agreement, where India has demanded a discount on tariffs on many products, such as textile, leather, shrimp, chemicals and grapes-America seeks relief on industrial products, wine, electric vehicles and dairy products. Meanwhile, US President Donald Trump claimed that India has really proposed no tariff deal, whereas according to the Indian side they are moving towards the Vin-Win-Win.