Amid rapidly deteriorating trade relationships between the world’s first- and fifth-largest economy by nominal GDP (Gross Domestic Product), United States and India respectively alongside a swathe of trade stand-offs ranging from digital taxations to stiffer legislations on US-based e-commerce conglomerates such as Amazon.com Inc.
and Walmart-owned Flipkart to added levies on US-borne medical equipment, in an unprecedented turn of event, India’s Commerce Minister Piyush Goyal said on Tuesday that the Trump Administration and the Indian Government of PM Narendra Modi of Bhartiya Janata Party had been in an advanced stage talk to rubber stamp a trade deal following two-year long negotiations which might include tax incentives for up to 100 products.
Nonetheless, if truth is to be told, latest move from Washington and Delhi to seal a trade deal came forth a month after a brutal border clash in the North-western Himalayan region over a territorial dispute between the Indian soldiers and the Chinese border troops, eventually adding further strains into the long-standing and acrimonious antagonism between the nuclear-powered neighbours.
Besides, the rapid erosion in relationship between Delhi and Beijing came forth at a critical time, while the Sino-US trade spat appeared to have escalated further following China’s inclination of a National Security Law at its island city of Hong Kong.
On top of that, Goyal’s remarks also came against the backdr op of an earlier comment from the US President Donald Trump, while the US President was quoted saying that he was not thinking about a “Phase 2” trade deal with China that in effect had opened up an opportunistic window for Delhi to capitalize on Sino-US trade row.
US-India trade deal almost there, says India’s Commerce Minister
Meanwhile, speaking at the US-India Business Council’s India Ideas Summit, adding that Delhi and Washington might look at a preferential trade pact for 50 to 100 products and could move into a free trade pact in a longer term, voicing a jubilant tone Goyal said earlier on Tuesday, “In the long term, I believe we have a quick trade deal which has some of the pending matters built up over the last couple of years, which we need to get out of the way quickly. We are almost there. ”