India-US Trade Deal Could Boost Exports, Says Finance Ministry Report
Last Updated:
A successful US-India trade deal could boost exports and unlock new markets, said the Finance Ministry. Trade Minister Piyush Goyal visited Washington to advance talks.
A successful trade agreement between India and the US could boost exports and unlock new market access, the Union Finance Ministry said in its monthly economic review on Tuesday.
'A successful US-India trade agreement could flip current headwinds into tailwinds, opening up new market access and energising exports," the report said.
Union Trade Minister Piyush Goyal visited Washington last week to advance trade talks, with both sides aiming to sign an interim agreement by early July.
New Delhi is seeking to clinch a trade deal with the U.S. within the 90-day pause on tariff hikes announced by US President Donald Trump on April 9 for major trading partners, which includes a 26% tariff on imports from India.
The US is India's largest trading partner, with bilateral trade totalling about $129 billion in 2024. The trade balance shows that India runs a $45.7 billion surplus with the United States.
The Union Finance Ministry report also said that the government's direct tax exemptions, fiscal measures and recent rate cuts from the central bank could accelerate the recovery and lift growth towards the upper end of forecasts of 6.3% to 6.8% in the current fiscal year.
Government capital spending is playing a 'pivotal role" in supporting economic activity, and shielding the economy from global shocks, the report said, noting that personal income tax cuts and the recent rate reduction by the central bank are also expected to spur consumption and private investment.
India has the potential to remain as one of the most promising destinations for investment amid ongoing global uncertainty, it said.
The report added that the Indian rupee has remained relatively stable and that foreign exchange reserves continue to provide a cushion against external shocks.
First Published:
May 27, 2025, 23:07 IST
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
22 minutes ago
- Economic Times
India bonds stable after benchmark breaches key level on rate-cut hopes
Indian government bond yields held steady early on Thursday, after the 10-year benchmark breached a key level in the previous session amid growing expectations of continued policy easing. ADVERTISEMENT The yield on the new benchmark 10-year bond was at 6.1712%, as of 10:15 a.m. IST, compared with the previous close of 6.1743%. The 2034 bond yield was at 6.2368% after settling at 6.2383%. "Bulls are waiting to step in one more time before the growth data, and we will not be surprised if there is an up move in prices before the end of today's session," trader with a state-run bank said. New Delhi will auction 300 billion rupees ($3.51 billion) of the benchmark 2035 bond on Friday, ahead of January-March GDP data, which is expected to show 6.7% growth versus 6.2% in the prior quarter, according to a Reuters poll. The Reserve Bank of India is widely expected to deliver a third straight 25-basis-points rate cut at its June 6 policy meeting. The central bank has cut repo rate by 50 basis points since The start of 2025 and has infused around $100 billion into the banking system since December. ADVERTISEMENT Traders also said bond yields are expected to decline further as broader sentiment remains favourable. RATES Overnight index swap (OIS) rates witnessed shallow trading volumes and with a bais towards paying in early trading. The one-year OIS witnessed was not yet traded after ending at 5.56% on Wednesday, while the two-year OIS rate was at 5.45% and the most liquid five-year was at 5.64%. ($1 = 85.4975 Indian rupees) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Scroll.in
29 minutes ago
- Scroll.in
US court blocks tariffs imposed by Donald Trump under emergency powers law
A court in the United States on Wednesday blocked tariffs imposed by President Donald Trump on imports into the country under a law that gives him extraordinary powers in emergency situations, reported Reuters. The New York-based Court of International Trade said that the country's Constitution gave Congress exclusive authority to regulate international commerce, and that the president's emergency powers did not override this. 'The court does not pass upon the wisdom or likely effectiveness of the president's use of tariffs as leverage,' a three-judge panel was quoted as saying by Reuters. 'That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it.' The court passed an injunction blocking all of Trump's tariff-related orders under the International Emergency Economic Powers Act. The ruling, however, does not halt the tariffs that the president imposed using his powers under Section 232 of the Trade Expansion Act of 1962, reported the Associated Press. Among the tariff measures imposed under this law were a 25% tax imposed on most imported automobiles and on all foreign-made steel and aluminium. On April 2, the United States announced 'reciprocal' tariffs on dozens of countries, including a 26% 'discounted' levy on India. Trump had repeatedly said he intended to impose a reciprocal tax on India, among others, citing the high tariffs the countries impose on foreign goods. On April 9, the so-called reciprocal tariffs imposed by the US on several countries took effect. Hours after, however, Trump reduced the tariff rates on imports from most countries to 10% for 90 days to provide time for trade negotiations. However, Washington had increased tariffs on China to 125% at the time. The US president had cited the 'lack of respect' Beijing had shown to the global markets for further increasing tariffs on imports from China. On May 12, however, the two countries agreed to suspend tariffs on each other's goods for 90 days. US Treasury Secretary Scott Bessent said that the two countries had agreed that tariffs would come down by more than 100 percentage points to 10%. In response to Wednesday's order, White House spokesperson Kush Desai said that US trade deficits amounted to a national emergency, reported the Associated Press. He said that the deficits decimated American communities, left our workers behind, and weakened our defense industrial base – facts that the court did not dispute.'
News18
31 minutes ago
- News18
AI Axe Falls On IBM Employees: Tech Giant Cuts 8,000 Jobs, Automates Parts of HR Dept
Last Updated: IBM CEO Arvind Krishna has openly discussed the company's increasing reliance on automation. IBM Layoffs 2025: IBM has recently laid off around 8,000 employees, focusing mainly on its Human Resources (HR) department, accordingly to several media reports. This action is part of a larger strategy by the US-based tech giant to incorporate artificial intelligence (AI) into its operations, especially in back-office roles. Earlier this month, IBM replaced about 200 HR positions with AI agents capable of performing repetitive administrative tasks like answering employee queries, processing paperwork, and organizing HR data. These AI-driven agents require minimal human oversight and are designed to enhance efficiency while cutting costs. advetisement A Shift In Workforce Management This decision represents a major change in IBM's approach to managing its workforce. IBM CEO Arvind Krishna has openly discussed the company's increasing reliance on automation. In a recent interview, he mentioned that AI is being adopted 'very aggressively" to streamline business processes. Despite job cuts in some areas, he noted that IBM's overall headcount has actually risen, as savings from automation are being redirected to areas like software development, marketing, and sales. 'While we have done a huge amount of work inside IBM on leveraging AI and automation on certain enterprise workflows, our total employment has actually gone up," Krishna said. 'It gives you more investment to put into other areas." Modernizing Over Downsizing Krishna emphasized that IBM's goal is not merely to reduce workforce numbers but to modernize it. The company aims to focus on roles that require human skills such as creativity, strategic thinking, and people management, while administrative and process-oriented roles are increasingly susceptible to automation. IBM's Chief Human Resources Officer, Nickle LaMoreaux, echoed this sentiment, stating that AI is not expected to fully replace most jobs. 'Very few roles will be completely replaced," she said. 'AI will take over the repetitive parts of the job, freeing up employees to focus on areas that need human judgment and decision-making." Promoting AI Capabilities While undergoing internal restructuring, IBM is also promoting its AI expertise to external clients. At its annual Think conference this month, the company introduced a suite of new tools to help businesses build and deploy their own AI agents, compatible with platforms from OpenAI, Microsoft, and Amazon. Industry Trends IBM's move reflects a broader industry trend. For instance, language learning platform Duolingo has recently announced it is replacing human contractors with AI. Similarly, Shopify CEO Tobias Lütke has implemented new policies requiring teams to justify new hires by showing that AI cannot perform the job instead. Watch India Pakistan Breaking News on CNN News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! Location : New Delhi, India, India First Published:
