The recent Joint Statement on the 5th Ministerial level Commercial Dialogue was released by India and the United States, marking a significant step in their economic and commercial collaboration. The Union Minister of Commerce and Industry of India and the US Trade Representative Ambassador co-chaired the 13th Ministerial-level meeting of India – US Trade Policy Forum (TPF) in Washington D.C. This article delves into the key takeaways from the dialogue and provides an overview of the current condition of India-US trade ties.
India-US Strategic Partnership
A key point of discussion during the dialogue was the strategic partnership between India and the US. Both countries discussed their economic and commercial engagement through platforms like the Initiative on Critical and Emerging Technology (iCET) and the Indo-Pacific Economic Framework (IPEF).
MoU on Semiconductor Supply Chain
A Memorandum of Understanding (MoU) on the semiconductor supply chain and innovation partnership was signed to promote cooperation in the segment. This is a crucial step considering the global shortage of semiconductors that has been affecting many industries recently.
Talent, Innovation and Inclusive Growth
Both countries recognized the importance of small businesses and entrepreneurs in their economies. To facilitate collaboration and foster innovation ecosystems, they announced the launch of a new Working Group on Talent, Innovation and Inclusive Growth under the Commercial Dialogue.
Travel and Tourism Working Group
In an effort to recover from pandemic disruptions, the Travel and Tourism Working Group was re-launched. This group’s aim is to address challenges and opportunities for a stronger travel and tourism sector.
Standards and Conformance Cooperation Program
Furthering their commitment to quality and compliance, both countries launched the Standards and Conformance Cooperation Program. It will be carried out by the American National Standard Institute (ANSI) and India’s Bureau of Indian Standards (BIS).
Strategic Trade Dialogue and Environmental Technology Business Development Mission
The Strategic Trade Dialogue aims to enhance high technology commerce and facilitate technology transfer. As part of the Environmental Technology Business Development Mission, a senior US government official will lead a business development mission to India in 2024.
Global Biofuels Alliance and US-India Energy Industry Network
Both sides pledged to work together in the Global Biofuels Alliance and in the development and deployment of hydrogen technologies. The US-India Energy Industry Network (EIN) was announced as a broad platform for facilitating US industry involvement in the Clean EDGE Asia initiative.
Telecommunications
Both countries expressed interest in developing next-generation standards in telecommunications, including 6G. This highlights their commitment to staying at the forefront of technological advancements.
India-US Trade Ties
Since 2014, bilateral goods and services trade between India and the US has almost doubled, exceeding US USD 191 billion in 2022. The US became India’s largest trading partner in 2022. Furthermore, both nations aim to achieve bilateral trade of USD 500 billion by 2025. The US is also the third biggest investor in India, with a cumulative Foreign Direct Investment (FDI) inflow of USD 56,753 million from April 2000 to September 2022.
This dialogue and collaboration signify not only the importance of the relationship between the two countries in the current global market, but also the future potential growth and mutual benefits that this partnership can yield. Thus, it is crucial to keep these dialogues active and beneficial for both parties.
