Trade Agreements between the US and India – An Overview
The United States and India are two powerful economies of the world. Both countries have a long-standing economic relationship that dates back to the 18th century. The two nations have collaborated on various fronts over the years, including trade. In recent years, several trade agreements have been signed between the US and India, aimed at improving trade relations between the two nations. In this article, we will take a closer look at the trade agreements between the US and India.
Trade Relations between the US and India
The trade relationship between the US and India has evolved over the years. Initially, the two nations had a limited trade relationship, focusing mainly on commodities such as tea and cotton. However, with the growth of the Indian economy, the trade relationship between the two nations has expanded significantly. The US is now one of India`s largest trading partners, with India being the ninth-largest trading partner of the US.
Trade Agreements between the US and India
Over the years, both nations have signed several trade agreements aimed at promoting bilateral trade relations between the two nations. Here are some of the notable trade agreements between the US and India:
1. Generalized System of Preferences (GSP): The GSP is a trade agreement that allows developing countries to export goods to the US at lower tariff rates. India has been a beneficiary of the GSP since 1976. The GSP agreement has helped India to export goods worth billions of dollars to the US.
2. Trade and Investment Framework Agreement (TIFA): The TIFA is a trade agreement that aims to expand trade and investment relations between the US and India. The TIFA has facilitated bilateral dialogues between the two nations and has helped to identify areas of collaboration that can boost bilateral trade and investment relations.
3. India-US Strategic Partnership: In 2015, both nations signed the India-US Strategic Partnership, aimed at expanding trade and investment relations between the two countries. The strategic partnership covers several areas, including energy, education, defense, and trade.
4. Information Technology Agreement (ITA): In 2019, India joined the ITA, which is a trade agreement aimed at promoting the global trade of information technology goods. The ITA covers a wide range of products, including software, computers, and telecom equipment.
Conclusion
The trade relationship between the US and India is crucial for both nations. The two economies have a lot to offer to each other, and the trade agreements between the two nations have helped to boost bilateral trade and investment relations. As both nations continue to grow, it is expected that the trade relationship between the US and India will continue to evolve, bringing more benefits to both nations.