New Delhi has set its sights on accelerating negotiations for a trade pact with the United States amid growing competition from other ASEAN countries, according to sources. The move comes as India looks to boost its trade ties and strengthen its position in the global market.
The Indian government has been actively pursuing a trade deal with the US for some time now, with talks first initiated in 2007. However, progress has been slow due to various reasons, including differences over market access and intellectual property rights. But with the current global economic climate and the rise of protectionism, both India and the US are now more determined than ever to finalize the deal.
According to sources, New Delhi is keen to speed up the negotiations as it sees the US as a key partner in its economic growth and development. The two countries have already established strong economic ties, with the US being India’s second-largest trading partner and one of the top investors in the country. A trade pact would further strengthen this relationship and open up new opportunities for both nations.
But India is not the only country vying for a trade deal with the US. Other ASEAN countries, such as Vietnam, Malaysia, and Singapore, are also in talks with the US to negotiate their own trade pacts. This has created a sense of urgency for India to move quickly and secure a deal before its competitors.
The ASEAN region has been a major focus for India in recent years, with the government actively working towards strengthening its economic and strategic ties with these countries. The ASEAN-India Free Trade Agreement, which was signed in 2009, has already led to a significant increase in trade between India and ASEAN countries. And with the ongoing negotiations for the Regional Comprehensive Economic Partnership (RCEP), India is looking to further deepen its economic engagement with the region.
But a trade pact with the US holds even greater significance for India. The US is the world’s largest economy and a major player in global trade. A trade deal with the US would not only boost India’s exports but also attract more foreign investment and technology into the country. It would also provide Indian businesses with access to the vast US market, giving them a competitive edge in the global market.
Moreover, a trade deal with the US would also help India diversify its trade partners and reduce its dependence on China, which is currently its largest trading partner. With ongoing tensions between India and China, a trade pact with the US would provide India with a much-needed alternative and help balance its trade relations.
The Indian government has been actively engaging with the US to address the issues that have been hindering the progress of the trade deal. Prime Minister Narendra Modi and US President Donald Trump have also held several meetings in the past to discuss bilateral trade and economic cooperation. The recent virtual summit between the two leaders has further reinvigorated the negotiations and given a new impetus to the trade deal.
In addition to boosting trade and investment, a trade pact with the US would also have significant geopolitical implications. It would not only strengthen India’s position in the Indo-Pacific region but also enhance its strategic partnership with the US. This would be crucial for India, especially in the current global scenario, where countries are increasingly looking for reliable partners to counter the economic and security challenges posed by China.
In conclusion, New Delhi’s focus on speeding up the trade pact with the US is a step in the right direction. It not only reflects India’s eagerness to strengthen its economic ties with one of the world’s leading economies but also its determination to emerge as a key player in the global market. With the ongoing negotiations and the positive outlook from both sides, it is only a matter of time before India and the US seal the deal and take their partnership to new heights.
