External Affairs Minister S. Jaishankar recently disclosed that India and the US are engaged in “very active and intense trade discussions” aimed at concluding a bilateral trade agreement (BTA) by fall this year. He highlighted this while speaking with Kyung-wha Kang of Asia Society in Delhi.
Jaishankar emphasized that the groundwork for these discussions was laid during Prime Minister Narendra Modi’s visit to Washington, where he held extensive talks with then-US President Donald Trump.
Key Areas of Focus in the Agreement
Defense Collaboration
Jaishankar noted a significant improvement in the India-US defense relationship, with the US demonstrating a willingness to share advanced defense technologies. He mentioned that Trump personally intervened to facilitate the transfer of crucial platforms and recognized the importance of creating easier pathways for India to acquire American technology.
Energy Security and Trade
Jaishankar pointed out India’s interest in boosting LNG imports from the US. He expressed optimism that the US, as a stable energy supplier, could help ensure a predictable and diverse energy environment for India’s long-term growth.
Technology and Big Tech Partnerships
The minister highlighted India’s interest in strengthening technology partnerships with US-based Big Tech companies. He emphasized the importance of reliable supply chains and trusted partnerships in the tech world, stressing that Big Tech’s success is linked to America’s economic growth.
India’s Decision on RCEP and Trade Safeguards
Jaishankar also explained India’s decision to opt out of the Regional Comprehensive Economic Partnership (RCEP), citing concerns about unfair competition and the potential hollowing out of India’s industrial capacity. He pointed out that RCEP failed to address India’s concerns regarding protections and safeguards, leading to India’s decision to stay out of the agreement.
Outlook on Future Relations
Jaishankar reiterated that India and the US continue to work on enhancing trade ties through virtual discussions following Commerce and Industry Minister Piyush Goyal’s visit to the US earlier this year. He expressed optimism that the bilateral trade agreement would be a game-changer for India-US relations.
