INDIA’S WAITING GAME PAYS OFF; TO SETTLE THE ISSUE OF ” PENAL TARRIFFS” ON TRADE IN GOODS SOON WITH U.S.
1. Currently India is the 9 th largest trading partner of the U.S.
2. India enjoys a surplus in trading in goods of about $23 bn with the US but the overall trade in goods and services between the two countries is adverse to India by about $50 bn.
3. Citing “security threats” , in March 2018, the U.S. imposed penal TARRIFFS on import of Steel ( 25%) and Aluminium (10%) from ,–
* The EU,
* Canada &
4. In June 2018, India announced ” retaliatory tarriffs”on 29 items of imports from America but did not implement it.
5. Now the two countries are close to striking a deal on scrapping the retaliatory tarriffs.
6. To those ” economically interested” , the U.S. has been the country running the biggest trade deficit ( imports exceeding exports) continuously ever since 1975!
7. In 2017, it imported a total of $ 2895 bn worth of goods & services but could export only goods & services worth $2329bn, leaving it with a huge trade deficit of $566bn.
8. Incidentally, India has also been running significant trade deficits, currently at $100bn+ , for decades now.