Latest news with #Aayog
Hans India
17-07-2025
- Business
- Hans India
NITI Aayog suggests services focused trade deal with US
New Delhi: NITI Aayog on Monday suggested that India should follow the model of the India-UK agreement to pursue a services-oriented trade deal with the US, with special focus on information technology, financial services, professional services, and education. The Aayog in its third edition of 'Trade Watch Quarterly' said there will be significant opportunities for India in the US markets both in terms of the number of products and volume of the US market. "Building on the model of the India-UK agreement, India should pursue a services-oriented trade deal with the US, placing strong emphasis on key sectors such as information technology, financial services, professional services, and education," it said. The government thinktank said the agreement should include robust provisions for digital trade, creating a framework for enhanced cross-border service delivery. The Aayog also emphasised that India must advocate for improved visa access for its professionals, particularly under H-1B and L-1 categories. "This should include provisions for intra-corporate transferees and independent service providers, which are crucial for maintaining India's competitive edge in the global services industry," it growing global demand for Digitally Delivered Services (DDS), the Aayog said India should seek firm market access commitments from the US in high-growth areas such as cybersecurity, artificial intelligence, telecom, and design services. "Leveraging India's strengths in these sectors can help increase bilateral trade and innovation-led growth," it said. Observing that regulatory barriers such as inconsistent data compliance and intellectual property concerns hinder Indian service exports, the Aayog said joint efforts between India and the US are needed to simplify licensing procedures and address cross-border data flow issues, enabling smoother market access for Indian firms. The government thinktank also said that to expand professional opportunities, India should push for broader Mutual Recognition Agreements (MRAs) that cover a wider range of professions, including engineers, architects, and healthcare workers. "These agreements would streamline certification processes and facilitate the mobility of Indian professionals to the US," it said.
Time of India
15-07-2025
- Business
- Time of India
India has edge in minerals, fuels, electronics under current US tariffs: Niti Aayog
India stands to gain in sectors with high tariff gaps vis-a-vis competing nations like China, Canada and Mexico if the existing tariffs imposed by the US, as on July 10, on India remain unchanged, Niti Aayog said. The Aayog's analysis, which is part of its Trade Watch Quarterly report for October-December quarter of 2024-25 released on Monday, comes at a time when India is in the final leg of firming up a trade deal with the US. As per the report, the sectors where India stands to gain include minerals and fuels, apparel, electronics, plastics, furniture and seafood. The Aayog has pegged the market size for these products at $1,265 billion. The report said India is expected to gain competitiveness in 22 out of top 30 products in the HS 2 categories, representing a market size of $2,285.2 billion and in 78 products out of top 100 in HS 4 categories. It further explained that China, Canada and Mexico are the leading exporters to the US in these categories, therefore higher tariffs on these countries at 30 per cent, 35 per cent and 25 per cent, respectively, will enhance India's competitiveness. "Significant opportunity for India in US markets both in terms of the number of products and volume of the US market," the Aayog said in its report. "India's relative tariff advantage vis-a-vis major competitors presents a strategic window to expand market share in the US market, especially in sectors such as pharmaceuticals, textiles, and electrical machinery, among others," it said.>
Hans India
15-07-2025
- Business
- Hans India
India and US trade talks intensify as tariffs reshuffle global market dynamics
New Delhi: Indian exports to the US will become more competitive following imposition of higher tariffs by the Trump administration on countries, including China, Canada, and Mexico, NITI Aayog said in a report on Monday. The Aayog in its third edition of 'Trade Watch Quarterly', said there will be significant opportunities for India in the US markets both in terms of the number of products and volume of the US market. 'India is expected to gain competitiveness in 22 out of the top 30 categories (HS 2 level), representing a market size of $2,285.2 billion,' the Aayog said. It further explained that China, Canada, and Mexico are the leading exporters to the US in these categories, therefore higher tariffs on these countries at 30 per cent, 35 per cent, and 25 per cent, respectively, will enhance India's competitiveness. The Aayog said India's competitiveness will remain unchanged in 6 out of 30 categories, amounting for 32.8 per cent exports to the US and 26 per cent of the US total imports, amounting to $26.5 billion. While for six product categories at HS 2 level, India faces a higher average tariff(between 1-3 per cent) which can be negotiated with the US, the Aayog said, 'In 78 products, accounting for 52 per cent of India's exports and 26 per cent share in total US imports, India is expected to gain competitiveness.' For 17 products (accounting for 28 per cent of India's export to the US) out of the top 100 products at the HS-4 level, the Aayog said India's competitiveness remains unchanged due to no change in tariff differential. The Aayog also pointed out that 'India stands to gain in sectors with high tariff gaps vs China, Canada and Mexico -- minerals and fuels, apparel, electronics, plastics, furniture, and seafoods in a $1,265-billion market'. Meanwhile, An Indian commerce ministry team has reached Washington for another round of talks on the proposed bilateral trade agreement (BTA), which will begin on Monday. Chief negotiator of India and special secretary in the department of commerce Rajesh Agrawal will join the team on Wednesday.
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Business Standard
14-07-2025
- Business
- Business Standard
US tariff tide likely to lift India's exports, reckons NITI Aayog
In 2024, India's bilateral trade (merchandise) with the US stood at $123.8 billion, with a trade surplus of $37.7 billion for India Dhruvaksh Saha Shreya Nandi New Delhi Listen to This Article India has a comparative edge over key competitors in a majority of products it exports to the US and stands to gain market share as the US raises tariffs on its major trade partners, NITI Aayog said on Monday. In its quarterly trade report, it recommended that the government fast-track the India-US free trade agreement with time-bound goals to resolve non-tariff barriers and finalise digital trade rules on data flows and e-signatures to support services exports. The Aayog's assessment is based on the assumption that India will face an additional 10 per cent tariff, while several other countries — including
The Print
14-07-2025
- Business
- The Print
Indian exports to US to be more competitive after tariff hike on China, other countries: Niti Aayog
'India is expected to gain competitiveness in 22 out of the top 30 categories (HS 2 level), representing a market size of USD 2,285.2 billion,' the Aayog said. The Aayog in its third edition of 'Trade Watch Quarterly' said there will be significant opportunities for India in the US markets both in terms of the number of products and volume of the US market. New Delhi, Jul 14 (PTI) Indian exports to the US will become more competitive following imposition of higher tariffs by the Trump administration on countries, including China, Canada, and Mexico, NITI Aayog said in a report on Monday. It further explained that China, Canada, and Mexico are the leading exporters to the US in these categories, therefore higher tariffs on these countries at 30 per cent, 35 per cent, and 25 per cent, respectively, will enhance India's competitiveness. The thematic focus of this quarter's edition is the evolving US trade and tariff structures and their implications for India's export competitiveness. 'India's relative tariff advantage vis-a-vis major competitors presents a strategic window to expand market share in the US market, especially in sectors such as pharmaceuticals, textiles, and electrical machinery, among others,' the Aayog said, adding that the evolving global trade environment demands agile policymaking to capitalise on new trade alignments. The government think tank said India's competitiveness will remain unchanged in 6 out of 30 categories, amounting for 32.8 per cent exports to the US and 26 per cent of the US total imports, amounting to USD 26.5 billion. While for six product categories at HS 2 level, India faces a higher average tariff (between 1-3 per cent) which can be negotiated with the US, the Aayog said, 'In 78 products, accounting for 52 per cent of India's exports and 26 per cent share in total US imports, India is expected to gain competitiveness.' For 17 products (accounting for 28 per cent of India's export to the US) out of the top 100 products at the HS-4 level, the Aayog said India's competitiveness remains unchanged due to no change in tariff differential. The Aayog also pointed out that 'India stands to gain in sectors with high tariff gaps vs China, Canada and Mexico — minerals and fuels, apparel, electronics, plastics, furniture, and seafoods in a USD 1,265-billion market'. To support MSMEs and boost export competitiveness, it said the government could consider expanding production-linked incentive (PLI) schemes to include labour-intensive sectors such as leather, footwear, furniture, and handicrafts. The Aayog also called for rationalising electricity tariffs by reducing cross-subsidisation for industrial users and promoting renewable energy adoption could help lower operational costs and enhance the global competitiveness of Indian manufacturers. It suggested that building on the model of the India-UK agreement, India should pursue a services-oriented trade deal with the US, placing strong emphasis on key sectors such as information technology, financial services, professional services, and education. 'The agreement should include robust provisions for digital trade, creating a framework for enhanced cross-border service delivery,' the Aayog said. Meanwhile, an Indian commerce ministry team has reached Washington for another round of talks on the proposed bilateral trade agreement (BTA), which will begin on Monday. The visit assumes significance as both sides have to iron out issues in sectors like agriculture and automobiles. It is also important as the US has further postponed the imposition of additional tariffs on several countries, including India, until August 1. Earlier this month, the Indian team was in Washington for talks, with negotiations taking place from June 26 to July 2. The team has once again reached the US for negotiations. India has hardened its position on the US demand for duty concessions on agri and dairy products. New Delhi has, so far, not given any duty concessions to any of its trading partners in a free trade agreement in the dairy sector. India is seeking the removal of this additional tariff (26 per cent). It is also seeking the easing of tariffs on steel and aluminium (50 per cent) and the auto (25 per cent) sectors. Against these, India has reserved its right under the WTO (World Trade Organization) norms to impose retaliatory duties. US President Donald Trump announced heavy tariffs on a number of countries, including India, on April 2. However, it was soon postponed for 90 days until July 9 and later to August 1. From July 7, the Trump administration has issued tariff letters to a number of its trading partners, including Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, Bosnia and Herzegovina, Cambodia, Kazakhstan, Laos, Serbia, and Tunisia. The US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, and agri goods, like dairy items, apples, tree nuts, and genetically modified crops. On the other hand, India is seeking duty concessions for labour-intensive sectors, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact. The two countries are looking to conclude talks for the first tranche of the proposed bilateral trade agreement (BTA) by fall (September-October) this year. Before that, they are looking for an interim trade pact. PTI BKS TRB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
