India is becoming a big name in the World Economy. India’s recent economic growth and indirect taxation reforms can support more US exports to the country in future, the US Trade Representative mentioned in their report.
“India’s economic growth and development can support significantly more US export in the future. India’s reformation of its goods and services tax can help to create a common internal market that noticeably lowers transaction cost,” the US Trade Representative (USTR) stated in their annual trade report.
This is the first trade report under Trump administration. It gives a good picture of the policies of newly formed US government with other countries including India. The report shows that the Trump government is optimistic about the reformation started by the Indian government. The new policy of National Intellectual Property Rights can protect US innovation. Such kind of reforms is very encouraging. There has been incensement in general trend of the tariff as well in India, which reflects an active pursuit of import substitution policy. In 2017, the US will tie up with India to make a meaningful progress in the relation for these ambitious goals.
USTR will be following all the work plans agreed during the October 2016 Trade Policy Forum of US-India. It will include convening digital video conference and personal meeting on agriculture, intellectual property right, trade in goods and services and promoting investment in manufacturing.
Looking at the balance of trade in favour of India, the report indicates that the bilateral trade will increase by multi-fold between US-INDIA.
As per the latest data update, in 1980 the Bilateral trade of US-India in goods and services was only USD 4.8 billion; in 2015 it grew to USD9 billion. It shows the annual growth rate is better than 9% in this period.
Prime Minister Narendra Modi and former US President, Barack Obama set the target of trade on USD 500 billion.
The USTR report also proves that the existing Indian trade and regulatory policy are giving a big hope to the US trade and they are hopeful with a better opportunity with growing economy of India.
The economic growth and changes in policies are being fruitful for India so far. First, India beat china in GDP now India is catching the eye of US trade which in turn will build a good relationship with the US. It will also help to brighten the future of Indian immigrants in the US.