Despite mutual interests in enhancing trade relations, the likelihood of a comprehensive bilateral trade pact resembling a free trade agreement (FTA) between the US and India seems uncertain, sources reveal. Discussions on a potential trade deal were underway, but both sides appeared hesitant to formalise any agreement shortly, citing sources who chose to remain anonymous.
Speculations loom over the impact of the upcoming US elections on trade dynamics, with suggestions that a second term for President Trump could see the US withdrawing from the World Trade Organization and opting for individualised tariff negotiations. This could potentially affect Indian exports to the US, given their significant trade surplus.
While US-India trade has seen substantial growth over the years, reaching nearly $200 billion in 2023, the prospect of a trade deal between the two nations remains uncertain. Indian policymakers await the election outcome, which could reshape the future of bilateral trade relationships. Stay tuned for further developments as the trade landscape evolves.
