US ‘working hard’ with India to help grow its economy: Mike Pompeo

By: |
July 31, 2019 5:36 PM

Trade tensions between India and the US have been rising with President Donald Trump complaining that tariffs imposed by New Delhi on American products were "no longer acceptable".

US, India, Mike Pompeo, indian economy, Trump administration, Indo-Pacific strategy, economy newsIn June, the US terminated India’s designation as beneficiary developing country under the Generalised System of Preferences (GSP) programme. (Reuters)

The US is “working hard” with the Indian government to provide the country with opportunities to grow its economy as part of the Trump administration’s Indo-Pacific strategy, Secretary of State Mike Pompeo has said. Trade tensions between India and the US have been rising with President Donald Trump complaining that tariffs imposed by New Delhi on American products were “no longer acceptable”.

In June, the US terminated India’s designation as beneficiary developing country under the Generalised System of Preferences (GSP) programme. India imposed retaliatory tariffs on 28 US products including almonds and apples from June 5, after the Trump administration revoked its preferential trade privileges. The GSP is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.

Pompeo’s remarks came weeks after a team led by Assistant US Trade Representative (AUSTR) for South and Central Asia, Christopher Wilson, held talks with senior Indian officials in New Delhi this month on a wide range of bilateral trade issues, in particular on tax and tariffs. “Our Indo-Pacific strategy is well on its way to bearing fruit for not only them but for the United States, and we have watched these coalitions build out. We’re working hard with the Indian government to provide them with opportunities to grow their economy as well,” Pompeo told reporters accompanying him on a tour to the Indo-Pacific region.

The US is also seeking greater market access for its dairy products and cut in customs duties in information and communications technology products. The American companies have also raised concerns over price cap on certain medical devices by India. Stating that the US has taken a unilateral position in rolling back export incentives from India, the Indian government has asserted that it would not allow trade negotiations to overtake issues of national interest.

Meanwhile, India’s Ambassador to the US, Harsh Vardhan Shringla said that trade between the two countries has grown to USD 142 billion in 2018, and is expected to reach USD 238 billion by 2025. The next stage of growth will be driven by the small and medium-sized enterprises (SME) in both the countries, he said in Colorado. Specifically, the growth of SMEs in the digital marketplace present an ideal opportunity for increased India-US cooperation, he added.

Do you know What is Positive GDP growth seen in Q3, need to fight inflation: RB, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India Subcontracting Expo 2021 to highlight trade opportunities in India for US businesses
2Kharif season: Most crops being sold below MSP
3Tax transfer to states down a fifth