There is a lot of thorn fighting in the US elections. Who is becoming the next president in America? Indians are also watching it with great curiosity, because it can affect business, military and diplomatic relations between India and America.
Win Trump or Biden, What about India?
However, most of the experts believe that the President is not going to have any special effect on any relationship formed. Military relations between the two countries have become good and many agreements have also been reached, but there are many problems in trade and economic matters. Both countries are trying to make a big trade deal, but nothing much progress has been made in it yet.
It does not seem that if Biden wins the presidential election, there will be more impact on relations with India, because there is not much difference in his policies. If Trump talks about protectionist policies like America First, Biden is also inclined towards such policies by giving a slogan of By American. Not only this, under the leadership of Biden, America can put more emphasis on compliance with environmental and labor laws in trade agreements.Statistics even suggest that the average tax on Indian goods in the last nearly 30 years has been lower (3.16%) in the Republican presidential era, while it has been slightly higher (3.37%) in the Democrat presidential era, according to the Biden Candidate Huh.
On the other hand, Trump has been constantly criticizing India’s tariff policies and calling India the Tariff King. Because of this, limited trade deals have been done between the two countries. That is, no matter who wins the election, America First’s policy will continue. The thing to note here is that in India too, the emphasis is on ‘Self-reliant India’ and ‘Make in India’.
India’s major exports to the US include gems and jewelery (17% of total US exports), textiles and readymade garments (15%), medicines and pharma products (13%), agricultural, marine and related products (9%) machinery. And equipment (10%), electric machinery (5%), electronics (4%).
On the other hand, the major imports from the US in India include petroleum and crude oil (19%), chemical (10%), agriculture, fruits and other related products (5%), aircraft and its parts (5%), electric machinery. (7%), Electronics Goods (8%), Gems and Jewelery (12%) etc. Bilateral trade between India and the US has increased to $ 89 billion in FY 2020 from $ 12 billion in FY 2000. During this period, exports from India to the US increased from $ 8 billion to $ 53 billion and imports from the US to India increased from $ 3.5 billion to $ 35 billion.
America still remains the top destination for India’s textile exports. But recently, the disadvantage of ending the GSP benefit is that India now faces more trade barriers than Bangladesh, Pakistan and Vietnam.
So it has to be seen whether a big trade deal can be signed under the new president’s term. It is also difficult to have a full-fledged Free Trade Agreement (FTA) with the US because of mutual conflict of interest in many sectors like pharma, data security, agriculture, dairy. But after Kovid-19 and in the changed situation of trade war with China, now India can expect more concessions from the US. Both countries can increase cooperation in new areas like artificial intelligence, green technology, digital, medical devices.