A free trade agreement (FTA) with the United States will be beneficial in comparison with those with the Regional Comprehensive Economic Partnership (RCEP) economies, according to the PHD Chamber of Commerce and Industry (PHDCCI), whose president Sanjay Aggarwal recently said India-US trade has the potential to more than double from $143 billion now to $300 billion by 2025-26.
Combining goods and services together, the bilateral trade between India and the United States has increased from around $96 billion in fiscal 2013-14 to around $143 billion in 2019-20, said Aggarwal.
Merchandise trade with RCEP economies grew at an annual rate of 3 per cent (year on year average) between 2015-16 and 2019-20 whereas trade with the United States grew at 7 per cent during the same period, the industry body said.
The chamber has come out with a research paper titled ‘The Future of Expanding India-USA Bilateral Relations; Strengthening bilateral ties through Free Trade Agreement to discuss the ever-expanding complementarities and synergies between India and the US’.
At this crucial juncture, dynamic economies such as India and USA hold immense potential for refueling global growth to a higher trajectory in the coming times, said Aggarwal in a press release.
Currently, India’s trade with 15 RCEP economies stands at around $220 billion; India runs a trade deficit with 11 of out 15 RCEP economies.
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