Prime Minister Narendra Modi will be visiting America from 21 to 27 September. During this time he will be involved in many programs including the famous ‘Howdy Modi’. During this time, a trade agreement can be reached between India and the US, which can make many products like iPhones imported in India cheap.
During this six-day tour, PM Modi will travel to Houston, Texas and New York cities of America. Business Standard has reported quoting official sources that during this time India-US can reach an agreement to resolve their pending business issues.
Work has been going on for almost a year to finalize the package of this agreement and business officials of both countries have met about six times. It is expected from India that it will bring some leniency to the curb on the coronary stent price. Apart from this, tax can be reduced on the import of certain information and communication technology products like some high-end mobile phones, smartwatches, iPhones coming from America. This may reduce the prices of iPhone in India further.
In return, the US may soften its aggressive approach of imposing a ‘reciprocal tax’ on Indian goods. US President Trump has previously alleged that India is a ‘country with high tariffs’, especially in the context of Harley Davidson motorcycles. By imposing such a tax on India, the trade relations between the two countries could have deteriorated. There is already tension in China-America, in such a situation, America can no longer afford to spoil its relations with India.
The US has scrapped that GSP (Generalized System of Preferences) facility under which Indian products have duty free access to the US market. After this, India increased import taxes on many important products of America. 44 influential US lawmakers have recently demanded the Trump administration to retain India in the GSP trade program.
The Trump administration excluded India from the ‘Generalized System of Preference’ (GSP) in June. Under GSP, India preferred to trade with the US. The US started GSP in 1976. Its purpose was to promote economic growth in developing countries. Under this, exports of selected goods to the US are allowed on duty-free or nominal tariffs to other countries.
India has also become a buyer of crude oil for America. Currently, America has become the largest producer of crude oil in the world. Therefore, he sees great potential in India. In the year 2017, for the first time, India had imported crude oil from the US. Indian Oil and Bharat Petroleum have ordered 2 million barrels of crude oil from the US.