A Robust Economic Relationship

Context: Highlighting key areas of economic collaboration between India and US.

Bilateral trade goal of $500 billion: In five years to 2019, bilateral trade grew at a CAGR of 7.7% per year to $146 billion. At the same rate, the $500 billion targets will be achieved by 2036.

Areas for economic collaboration

• Collaborative response to pandemic: Upholding global containment of virus management.
  • Building confidence in Indian IPR regime, reviving U.S.-India Health Dialogue, and mutually recognising standards and approvals.
• Strengthen macro trade architecture: Need to initiate discussions on FTA.
  • Revive U.S.-India Trade Policy Forum meetings: With a cross-sector track-2 group to look at convergence on issues such as market access.
  • Call for flexibility from both sides: by restoring the Generalised System of Preferences (GSP).
• Mobility of professional labour: Immigration reforms for employment-based visa backlogs and smooth and timely processes.
  • Update MoU on labour cooperation signed in 2011, reconsider totalisation agreement pertaining to social security.
• Step up defence industry ties: India could benefit from US technology, and the US could leverage Indian manufacturing capacities; including private sectors could boost co-production and co-development.
• Step up the engagement of small and medium enterprises (SMEs): Set up U.S.-India SME CEOs Forum.
• Prioritising clean energy and climate change: U.S.-India Strategic Energy Partnership geared towards joint investments in industrial decarbonisation, carbon dioxide removal and green hydrogen.
  • Relaunch the programmes of Partnership to Advance Clean Energy Research, Partnership to Advance Clean Energy Deployment and Promoting Energy Access through Clean Energy.
• Digital economy partnership: Leverage new opportunities opening up in robotics, space, AI and electric vehicles. Work towards taking India off the US Trade Representative IPR priority watchlist.
• Other opportunities: Education, innovation and R&D, and agricultural trade and technology.