India, US succeed in resolving disputes during the Prime Minister's visit

Washington – During Prime Minister Modi’s visit to the US, both countries successfully resolved six trade disputes which reached the World Trade Organisation (WTO). India’s Minister of Commerce and Industry, Piyush Goyal, has expressed confidence that this will further increase the trade between India and the United States hereafter, and both countries will benefit from it.

In addition, the US has become India’s largest trading partner country. In the financial year 2022-23, the trade of both countries has increased and reached $191 billion. The business has doubled compared to the year 2014. But, despite this, the trade disputes between the two countries were also increasing, which had reached the WTO. However, both countries seem to have successfully resolved this dispute during Prime Minister Narendra Modi’s visit to the United States.

In 2018, since the US had begun collecting a 25% tax on iron exported from India and 10% on aluminium, India imposed a tax on 28 American products in 2019. This dispute reached WTO, where both countries also levelled allegations against each other. However, the six major disputes between India-US have been resolved now. Therefore, there are claims that barriers to trade between the two countries have been reduced to a great extent, and the speed and scope of bilateral trade will increase further.

In the last financial year, the US had overtaken China to become India’s largest trading partner. There have been indications that the trade between both countries will increase tremendously in this financial year. Both countries had put forward a target of increasing bilateral trade to $500 billion. However, India and the United States did not resolve the trade dispute successfully. India’s Minister of Commerce and Industry said that the disputes between the two countries getting resolved is a great success and claimed that both countries would benefit greatly.

At present, there is no dispute left in the Indo-US trade. Goyal said that US Trade Representative (USTR) Katherine Tai will be in India by the end of this year for the Trade Policy Forum (TPF) meeting. Meanwhile, she also expressed satisfaction by saying that due to the end of this dispute, India’s market will open for the agricultural sector of the US.

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