Trump’s Visit To India: The Bilateral Trade Relations between India and the USA have been neglected for a long time, and the India-USA trade had been suffering from a deficit in the trade balance. To put it into numbers, the deficit has grown larger with every passing year in every business from 1998 to 2018.
In Goods and Services Trade, India has a deficit in the trade balance of 25.2 billion USD. In Goods Trade, we have a net deficit of 20.8 billion USD. In Agricultural Trade, we are in a net deficit of 1.2 billion USD. Manufacturing Trade has been affected as well as we are in a deficit of 25.6 billion USD. Lastly, the service industry has seen a lesser deficit of 4.4 billion USD.
Being the absolute Capitalist Trump is, there is no way the President of the US can let this slide by. Having Friendly relations with Narendra Modi, Donald Trump had reportedly decided to tackle this issue of India’s Trade Deficit head-on with his visit to India. He and Modi are continuing to affirm the possibility of moving forward with a Free Trade Agreement(FTA) that would make trade between the two nations more balanced within two years into the future.
When is the Deal going down?
India’s Trade deficit is not recent as it had been growing almost since 2005. The trade deal was supposed to have happened before Narendra Modi’s visit to Houston Last year. But the deal was postponed then, and now it is said that the agreement would be finalized after Trump’s visit to India. But the effectuation of the contract is supposed to be happening after US elections in November 2020. With all the delay in decision making, it is quite evident that the US has been testing India’s anxiety levels to narrow down just how desperately India wants the deal to go down as India is supposed to be profiting the most out of this deal.
There is a decision to be made on quantities and tariffs regarding the trade deal, and the US has been preparing for this and who better to settle scores than a pro-business politician.
Talks regarding the visit.
Trump’s visit to India had been set to be during 2018’s Republic Day parade; however, in 2018 The white house said that due to his busy schedule, Trump could not travel to India and honor us by being The Chief Guest to India’s Republic day parade celebration.
Among the prime constraints was Trump’s speech at the State of the Union, where the Us President addresses the US Congress’s joint sitting every year.
In 2019’s January 7, Narendra Modi and President Trump spoke over a phone call and decided on his visit to India, which was later confirmed by Defence Minister Rajnath Singh and External affairs minister Jaishankar.
The logistics and security departments of the United States had confirmed that they’d be sending teams to prepare grounds for the President’s long-awaited visit to India.
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