The 13th Ministerial-level meeting of the India-US Trade Policy Forum (TPF), recently held in Washington D.C., included co-chairs the Union Minister of Commerce and Industry of India, and the U.S.’s Trade Representative Ambassador. The meeting revealed significant developments in India-US trade relations and explored potential solutions for outstanding issues.
Understanding India-US Trade Policy Forum
India-US TPF serves as a platform that encourages its working groups to address mutual concerns in areas such as agriculture, non-agricultural goods, services, investment, and intellectual property. Its purpose is to yield appreciable benefits to both nations by resolving pending market access issues.
Discussions and Highlights of the Ministerial Meeting
The meeting applauded the growth in bilateral trade in goods and services, amounting to approximately 160 billion USD in 2021. However, it acknowledged that there was significant potential yet to be harnessed given the vastness of both economies. The U.S.’s invitation for India to participate in the Indo-Pacific Economic Framework for Prosperity (IPEF) was appreciated, recognizing their shared views on the efficiency of IPEF for continued growth, peace, and prosperity in the Indo-Pacific region.
One of the major outcomes of the meeting was the finalization of the Turtle Excluder Device (TED) design, supported by the National Oceanic and Atmospheric Administration (NOAA). This device will help reduce the impact of fishing activities on sea turtle populations.
Launch of New TPF Working Group on Resilient Trade
In line with the meeting’s objective, a new TPF Working Group on Resilient Trade was launched to support officials in deepening their understanding of various issues. The key aspects this group will focus on until the next TPF Ministerial meeting include trade facilitation, promotion of labor rights and workforce development, the circular economy, and the role of trade in environmental protection.
Exploring India’s Trade Relationship with the U.S.
The current India-U.S. bilateral partnership covers a wide range of issues including response to Covid-19, post-pandemic economic recovery, the climate crisis, emerging technologies, sustainable development, education, supply chain resilience, and defence and security. The U.S. is India’s largest trading partner and most significant export market. In 2021-22, India recorded a trade surplus of USD 32.8 billion with the U.S.
Despite contrasting responses towards the Russia-Ukraine crisis from India and the U.S., both countries have reiterated their commitment to continue building on recent momentum, maintaining focus on the strategic big picture.
Challenges in India-US Relations
One of the main challenges complicating India and the U.S.’s relations is Washington’s failure to allocate a position for India in its global strategy that satisfies India’s national self-esteem and ambitions accurately. This issue was picked up in a previous year question (2019) in the UPSC Civil Services Examination, emphasizing the need to find a suitable balance that assures mutual growth and respect.
