As the two countries continue to negotiate a trade agreement, India is seeking to reduce its trade surplus by shifting the procurement of some items from other countries to the US. According to one official, New Delhi may reduce its imports of high-end fibre from China in order to source them from the United States.
Examining what goods can be imported from the US is the first step in lowering their trade deficit. “This is one tactic to boost our trade engagement,” the official stated. According to the person, the government is examining nations with which India has little bilateral trade and where there is a trade imbalance that benefits those countries.
India’s trade reconsideration follows US President Donald Trump’s declaration that, starting on April 2, his government would apply reciprocal tariffs to all nations, including India.
Some speciality and high-tenacity fibres are imported from China and are not produced in India, said a representative of the textile industry, adding that these can be purchased from the United States.
Given that India’s merchandise trade imbalance with the US has been increasing and reached US $ 35.33 billion in FY ’24, the exercise takes on significance. Washington wants the trade to be balanced. To improve market access, expand supply chain integration, and boost bilateral commerce in goods and services, both parties have adopted a coordinated strategy.
