India, US resolve to double trade in three years

BUSH IN INDIA

India and the United States today said they would double bilateral trade to $ 40 billion in the next three years.

Speaking to reporters after a meeting of the Indo-US Trade Policy Forum, Commerce and Industry Minister Kamal Nath said collaboration between small and medium enterprises of the two countries would play a huge role in increasing the trade flow.

Nath met the United States Trade Representative, Rob Portman, to discuss bilateral trade relations. Portman stressed the potential for increasing the trade volume. He compared the US' merchandise trade with China and India and said that while US trade with China was valued at $ 300 billion annually, it came to just $ 30 billion with India.

The talks revolved around review of the activities of the India-US Trade Policy Forum in context of issues and priorities being addressed by the five focus groups on agriculture, tariff and non-tariff barriers (NBT) in industrial products, services, investment and innovation and creativity. The Doha Development Agenda also figured in the talks.

The major items that India exports to the US are gems and jewellery, ready-made garments (cotton) and accessories, metals' primary and semi-finished items and steel, and drugs, pharmaceuticals and fine chemicals.

The US is India's largest trading partner and accounts for 16.48 per cent of India's exports. India imports 6.26 per cent of its total imports from the country. On the other hand, India accounts for only about 1.06 per cent of the total US exports and imports.