कृपया इसे हिंदी में पढ़ने के लिए यहाँ क्लिक करें
Summary
In a high-profile address in Jaipur on April 22, 2025, U.S. Vice President J.D. Vance urged India to eliminate certain non-tariff barriers (NTBs) that restrict American firms’ access to the Indian market, framing it as a pivotal step toward finalizing a comprehensive U.S.–India trade agreement by autumn 2025. These talks, kick-started by Prime Minister Narendra Modi’s February 2025 visit to Washington, aim to double bilateral trade to $500 billion by 2030, spanning sectors from e-commerce and agriculture to energy and defense. Vance’s call reflects Washington’s desire to deepen strategic cooperation with New Delhi amid shared Indo-Pacific concerns, while New Delhi weighs the domestic impact on its industries, farmers, and small businesses.
Background of U.S.–India Trade Negotiations
February 2025 White House Summit
Prime Minister Modi’s first in-person meeting with U.S. leadership in February 2025 culminated in an agreement to launch formal trade negotiations, with both sides finalizing the “terms of reference” to guide discussions.
Trade-Doubling Ambition
The deal aspires to more than double two-way trade—from roughly $129 billion in 2024 to $500 billion by 2030—by reducing both tariff and non-tariff obstacles.
What Are Non-Tariff Barriers?
Non-tariff barriers are policy measures—such as stringent quality standards, import licensing, and complex compliance procedures—that do not involve direct taxes but can deeply impede the flow of goods. When these measures exceed scientific or safety justifications, they become arbitrary “non-tariff barriers,” creating hurdles equivalent to high duties.
Vance’s Key Demands
- Market Access: “India should consider dropping some of the non-tariff barriers for American access to the Indian market,” Vance stated, stressing that this was essential to conclude the trade framework.
- Energy Cooperation: The U.S. seeks to expand exports of affordable, reliable energy—including LNG and petrochemicals—to India, and to assist in offshore gas exploration projects.
- Defense Collaboration: Vance announced plans for joint co-production of defense equipment and urged New Delhi to procure more U.S. military hardware, positioning this as mutually beneficial for security and industry.
- High-Tech and Critical Minerals: Emphasizing clean-energy technologies, Washington offered partnerships to secure critical mineral supplies crucial for semiconductors and batteries.
Ground-Level Reactions in India
- Small Manufacturers: Some local SMEs welcome streamlined standards but worry about sudden exposure to pricing pressures from multinational chains.
- Farmers and Agri-Exports: Exporters in Tamil Nadu and Maharashtra hope easing NTBs on food items—such as spices and dairy—could boost shipments, but they remain cautious about quality audits.
- E-Commerce Firms: Indian startups see potential in a more open market for online retail platforms, but fear competition from Amazon and Walmart if data‐localization norms are relaxed.
Historical Context
- “Tariff King” Label: Former President Trump repeatedly dubbed India the “tariff king” due to its average applied tariff rate of 12% versus the U.S. rate of 2.2%.
- Reciprocal Tariffs Threat: In April 2025, the U.S. imposed a 27% “reciprocal tariff” on select Indian goods, pressuring New Delhi to negotiate rather than retaliate.
Key Personalities
- J.D. Vance: U.S. Vice President leading the diplomatic push in India.
- Narendra Modi: Indian Prime Minister advocating balanced market reforms.
- Jamie Greer: U.S. Trade Representative who finalized the negotiation roadmap on April 21, 2025.
- Scott Bessent: U.S. Treasury Secretary affirming India’s role as a priority trade partner.
What’s Next?
Both governments aim to wrap up key negotiation chapters by autumn 2025. A successful accord could reshape global supply chains, bolster clean-energy initiatives, and reinforce the U.S.–India strategic partnership.
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