(Image source from: hindustantimes.com)
The President of the United States Donald Trump has said on Thursday that the two countries of India and the United States could make a ‘tremendous’ trade deal. This statement has been made by the US President prior to his visit to India which is scheduled to be on the 24th and 25th of February.
Donald Trump has said in a statement in Las Vegas at the Hope for Prisoners Graduation Ceremony, in his commencement address that “We’re going to India, and we may make a tremendous deal there.”
The visit of Donald Trump to India is said to be accompanied by the First Lady Melania Trump which is scheduled to be on the 24th and 25th of February. It has been said that the president Donald Trump and First Lady Melania Trump would be paying a visit to Ahmedabad, Agra and New Delhi in their Indian visit.
Prior to their visit, there have been talks regarding the trade package as a precursor to a major trade deal between the two countries of India and the United States.
The US President has indicated in his commencement address that the talks regarding the trade deal might slow down if there exists no good deal. He has said that the trade deal might slow down and would probably be done after the election.
Donald Trump has said that the deals are being made only if they are good deals because the United States of America is kept in the first priority whether it is liked by people or not.
It has also been mentioned that the bilateral trade between the countries of India and the United States in goods and services is about three percent of the world trade of the United States.
The Congressional Research Service (CRS) has said in a report which has been made in recent times that the trading relationship seems to be more consequential for India. The report has mentioned the trade that has been done by India in the year 2018 where in it can be observed that the United Sates was the second largest goods export market with 16.0 per cent share which is observed to be after the European Union with EU, 17.8 per cent and the third largest goods import supplier with 6.3 per cent after China with 14.6 per cent and the EU 28 with 10.2 per cent.
The administration of Trump would take issue with the trade deficit of the United States with India and it has criticized India for a range of unfair trading practices, as said by the Congressional Research Service.
It has also added saying that the first term of Narendra Modi as a Prime Minister of India has fallen short regarding the expectations of many observers because India has not taken a step in moving forward with the anticipated market opening reforms but instead there has been an increase in the tariffs and trade restrictions.
"Modi's strong electoral mandate may embolden the Indian government to press ahead with its reform agenda with greater vigour. Slowing economic growth in India raises concerns about its business environment," as said by the Congressional Research Service.
By Shrithika Kushangi