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As Joe Biden takes oath as the 46th president of the United States (US), a look at the data shows the country continues to remain a major destination of foreign exchange earnings for India.
Exports to the US account for 15-17% of India’s merchandise outbound shipments. Though China is at a distant second, it has improved its position from fourth and third-biggest export destination.
China also continues to remain the main source of our imports, with the US at the fifth place.
Thorny issues:
i) Withdrawal of trade concessions worth $5.6 bn by US from India under Generalised System of Preferences
ii) Iconic American motorcycle maker Harley Davidson Motor Co. Exits from India. Though decision was commercial, earlier Donald Trump had slammed India
for imposing high tariffs on Harley Davidson motorbikes
iii) US puts India on its monitoring list of currency manipulation after RBI purchased foreign currencies to mitigate the impact of surge in portfolio flows
iv) US Trade Representative Office says India's move to impose digital tax of two per cent on technology companies was unreasonable, burdensome and discriminatory against American companies such as Amazon, Google and Facbook. Says the move is actionable under section 301 of the Trade Act which may
mean retaliatory tariffs on Indian products
v) US tightens norms on H-1B visas for skilled workers, a large proportion of which goes to Indians
vi) US slams India for high trade tariffs and restrictive investment policies at the WTO trade review of India
Hanging in the balance: proposed mini trade deal between the two countries
