Key Takeaways
- The India-US Bilateral Trade Agreement is a crucial trade agreement between India and the US, aimed at promoting trade and economic cooperation.
- Indian exporters face challenges such as high power costs in India and the lack of tariff exemptions from the US, which puts them at a disadvantage.
- India is seeking to ensure that its final agreement is on par or better than those of other US trade partners.
New Delhi: EEPC India, the country’s apex engineering exports promotion body, on Friday held an Open House Session on the India-US Bilateral Trade Agreement (BTA) here in which participating members shared that buyers in the US are delaying orders due to policy uncertainty, making it hard for businesses to plan and grow.
The US has recently doubled tariffs under Section 232, from 25 percent to 50 pc, on steel, steel products, and aluminium. This move has put Indian exporters at a disadvantage.
Auto components face a 25 pc duty, while other items are taxed at 10 pc.
Unlike countries like Canada, Mexico, and the UK, India does not enjoy tariff exemptions from the US. This puts Indian exporters at a disadvantage, especially for low-margin products that are easily replaceable and sensitive to price changes, the speakers said.
EEPC India chairman Pankaj Chadha, emphasised that while the BTA may take time, India must ensure that its final agreement is on par or better than those of other US trade partners.
India’s penetration in the US engineering market remains low, with a modest 1.8 pc share. India ranks only 13th among the US’s engineering trade partners, highlighting the need for increased trade cooperation.
“These small figures might offer India an opportunity to request more favourable trade terms under the ongoing BTA discussions to support its engineering exporters,” he noted.
The aluminium industry raised concerns about high power costs in India, which make production expensive. In contrast, countries like Canada and those in Europe, which use cheaper renewable energy, can offer better prices and gain market share in the US. Producers in the Middle East, such as UAE and Bahrain, are also expanding rapidly.
EEPC India members appreciated the Government’s support in dealing with various challenges which hit the industry from time to time.
Rajesh Agrawal, Special Secretary in the Department of Commerce and India’s Chief Negotiator for the BTA was the chief guest at the session
