Future of expanding India - USA bilateral relations through Free Trade Agreement (FTA)

 

PHD Research Bureau has undertaken a research paper on the ever-expanding complementarities and synergies between India and the USA through Free Trade Agreement (FTA).

 

FTA with the USA will be a major breakthrough to double India-USA bilateral trade to USD 300 billion by FY 2025-26. Our merchandise trade with RCEP economies grew at an annual rate of 3% (year on year average) during 2015-16 to 2019-20 whereas trade with the USA grew at 7% during the same period.

 

Going ahead, bilateral trade between India and the USA has the potential to more than double from the present level of around USD 143 billion to reach USD 300 billion by 2025-26 with the signing of a comprehensive India-USA FTA.

 

At this juncture, efforts should be made to further deepen trade & investment relations between India & USA,  greater market access with a focus on promising sectors of mutual interest including defense manufacturing, space research, aviation, engineering, Agri & food processing, pharmaceuticals, ICT & digital infrastructure, among other various promising sectors.