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Time of India
4 days ago
- Business
- Time of India
India-US trade agreement will be big shot in the arm: Arvind Panagariya
New York, The proposed India-US trade agreement will be a big shot in the arm and make India a very attractive location for investors and result in a lot of liberalisation by the country, Chairman of the 16th Finance Commission Arvind Panagariya has said. "A lot of the current things that are underway are very exciting," Panagariya said during an interaction hosted at the Consulate General of India in New York this week. Explore courses from Top Institutes in Please select course: Select a Course Category Artificial Intelligence Data Science Operations Management Data Science MCA others Finance Management Product Management Others healthcare Digital Marketing MBA PGDM CXO Public Policy Degree Design Thinking Healthcare Technology Project Management Data Analytics Leadership Cybersecurity Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details "In particular, I want to mention the US-India trade agreement that is being negotiated. Also, the India-European Union agreement," the eminent economist said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo He said that the India-US trade agreement will be a "big shot in the arm". Once the India-US trade deal happens, the one with the European Union will also happen and "that door will open very conveniently," he said. Live Events With these two trade deals, "India will have an open market with the European Union, with the United States. These are the two largest markets. For any future investor, that makes India a very attractive location because effectively, the friction that is there on the border will melt away, and that is going to be an absolute game changer," Panagariya said. In response to a question by PTI on the India-US trade deal and tariffs, Panagariya said that "as far India is concerned, potentially, I see a lot of good might come out of it, because when the agreement has to be signed with the United States, India will also be lowering its tariffs." "This is a tremendous opportunity for India, and it is very seriously negotiating the agreement with the United States. So I'm sort of hoping to hear the good news," he said. "The most important thing is that this will result in a lot of liberalisation by India itself, and that, I think, is a very large part of the story. Of course, better access to the US market relative to its other competitors is a big plus also," Panagariya said. Panagariya, an eminent Columbia University professor and former Vice Chairman of NITI Aayog , also noted that from President Donald Trump to Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent have voiced optimism that an India-US trade agreement is almost imminent. Trump has stated on various occasions that the trade deal with India will happen soon, commenting as recently as last week that "We're very close to a deal with India, where they open it up." Trump has set 1 August as the deadline for several countries, including India, to sign a trade deal or face steep tariffs. Last month, Lutnick had said that one should expect a trade deal between India and the US in the not-too-distant future and that he is "very optimistic." The US' total goods trade with India is estimated at USD 129.2 billion in 2024. US goods exports to India in 2024 were USD 41.8 billion, up 3.4 per cent (USD 1.4 billion) from 2023. US goods imports from India totalled USD 87.4 billion in 2024, up 4.5 per cent (USD 3.7 billion) from 2023. The US goods trade deficit with India was USD 45.7 billion in 2024. Prime Minister Narendra Modi and President Trump have set a new goal for bilateral trade, 'Mission 500', aiming to more than double total bilateral trade to USD 500 billion by 2030. Negotiations between India and the US are underway to iron out pending issues for the trade deal. Commerce Minister Piyush Goyal reportedly said in London that Delhi is making "fantastic progress" in trade talks with Washington. Prime Minister Modi has also said that India is working on finalising a "mutually beneficial" trade agreement with the EU by the end of this year. Panagariya also elaborated on the 'Viksit Bharat' vision for India that envisages the country as a developed economy by 2047. He noted that in real dollar terms, India's GDP during 2003-2017 grew at 10 per cent and at about 7.8 per cent annually up till 2024. "If we can continue to do even what we have done actually over the last about 20 plus years, starting in 2003, we can get there", being able to grow at about 7.8 per cent. And there are reasons actually that we can on the whole probably do even better in the next 23-24 years," he said. India's current per-capita GNI (Gross National Income) in 2024-25 is USD 2,740, while the World Bank threshold per-capita GNI to achieve high-income country status is USD 13,995. The annual compound growth in constant dollars in per-capita GNI required to cross the World Bank threshold from this level is 7.3 per cent. With the population growth rate of 0.6 per cent, this per-capita GNI growth requires a GNI growth rate of 7.9 per cent, he said. India, the fifth largest economy in the world, has a GDP of USD 3.91 trillion in 2024-25, behind the fourth largest economy, Japan, which has a GDP of 4.19 trillion and Germany, the third largest with a GDP of USD 4.66 trillion. With India's growth in current dollars at 8-10 per cent, Panagariya said it is almost certain that India will surpass the GDPs of both Japan and Germany within three years and therefore, by the end of 2027, will become the third largest economy. Highlighting factors that put India in a favourable position to achieve the 2047 goal, Panagariya pointed to the very large gap between India's per-capita GDP (USD 2,780) as compared to South Korea (USD 33,120), Singapore (USD 84,730), the US (USD 82,770) and Germany (USD 53,340). This gap indicates that there is a large scope for catch-up for India, he said. In addition to this, India's large population will lead to scale economies in the provision of public goods, especially digital infrastructure and its young population will lead to a high worker/population ratio and high savings rate. Other key factors include a great momentum in both physical and digital infrastructure development, with road, railway and civil aviation infrastructure being built at breakneck speed and India's digital public infrastructure digitising public and private transactions faster than in most countries, he said. Noting the considerable scope for economic reforms, Panagariya referred to the implementation of new labour codes and much greater awareness among the states of the importance of urbanisation. On the challenges in the journey ahead, Panagariya emphasised that the transition out of the rural agricultural economy into industrial and services is the biggest challenge for India. "Therefore, the creation of well-paid jobs in industry and services is the biggest challenge," he said. PTI
Hindustan Times
01-07-2025
- Business
- Hindustan Times
India-EU trade talks gained urgency due to US tariffs, Europe's trade deficit with China: EU envoy
Negotiations for the India-European Union (EU) free trade agreement have gained urgency because of US tariff policies and Europe's trade deficit with China, and both sides are committed to the yearend deadline for finalising the deal because failure will result in a 'significant cost', EU ambassador Hervé Delphin has said. The two sides set to begin the 12th round of negotiations in Brussels on July 7. (@EUAmbIndia) With the two sides set to begin the 12th round of negotiations in Brussels on July 7, Delphin said in an interview that five chapters of the proposed FTA on intellectual property, customs and trade facilitation, transparency, good regulatory practices and mutual administrative assistance were closed at the last round in May. Delphin acknowledged that 'big blocks', such as core market access issues, tariffs, and technical barriers to trade, are yet to be agreed on, though negotiations haven't been blocked by such matters as the two sides are holding talks to 'delineate the parameters of [a] landing zone'. The yearend deadline set by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen during the EU College of Commissioners visit in February gave focus to the FTA negotiations, which were relaunched in June 2022 after a hiatus of almost a decade. 'Since this pronouncement by the leaders, the geo-economic environment has made this guidance even more compelling. There was a foresight [and] a clear vision that this FTA is needed,' Delphin said, adding the deal will help in derisking and providing stability. 'There are the tariffs by the US, but there is also, as far as the EU is concerned, this trade deficit we have with China. That creates a significant trade distortion…The fact that it's not just tariffs, it's the whole construct of what was the so-called global trade order, which is unravelling,' he said. India and the EU stand to gain from the deal because of complementarities between the two economies. 'With this context of geopolitical and geoeconomic turbulence, the fact that derisking is increasingly important and Covid-19 showed the importance of diversifying, there are a lot of elements to make the case for the FTA even more compelling,' Delphin said. 'If you put all that together, that has given so much traction and so much focus to get the FTA done by the end of the year.' Delphin pointed to the frequency and intensity of negotiations, including recent visits to Brussels by commerce minister Piyush Goyal and external affairs minister S Jaishankar, and said the message emerging from these meetings was the same - the determination to get the deal done. 'I think we can be reasonably confident that it's going to be there because in a way, failure, at this point in time, would have a significant cost for both. I think failure is not contemplated. We want to get [the trade deal],' he said. Besides formal rounds of negotiations, there have been other contacts to push the trade deal, with the EU's chief negotiator travelling to New Delhi to meet his Indian counterpart last Saturday to take stock of the talks. 'If you look at the substance, at the last round, we closed five chapters on intellectual property, customs and trade facilitation, transparency, good regulatory practices, and mutual administrative assistance. We are moving closer to closing chapters on dispute settlement, state-owned enterprises, subsidies and digital trade,' Delphin said. Delphin acknowledged India's sensitivities about the agricultural sector, noting that red lines had been 'framed from the very beginning', but said wines and spirits continue to be an important element for the EU side. 'We are not going to lose time on those, to be very frank. But there is one element within the agriculture chapter, which is wines and spirits…This is part of the elements that would form meaningful trade. On this, we are quite optimistic of progress,' he said. Asked if the India-UK FTA finalised in May - which envisages cutting Indian import duty on Scotch whisky and gin from 150% to 75% initially, with a further reduction to 40% over 10 years - can serve as a template for India and the EU, Delphin replied: 'Not a template, but a reference point because it gives a benchmark. The size of the EU economy is 12 or 14 times…bigger than the UK. You want this somehow to be reflected in the agreement,' he said. India's move to revise the text of the model Bilateral Investment Treaty and a proposed amendment of the Geographical Indications (GI) of Goods Act are positive developments that will have a 'net positive fallout' on India-EU negotiations for agreements on bilateral investments and GI, Delphin said. He sought to address the Indian side's concerns about the EU's Carbon Border Adjustment Mechanism (CBAM), set to kick in from January 2026, by saying it is 'not a trade instrument'. The EU has engaged in an outreach to Indian industry through the Federation of Indian Chambers of Commerce and Industry (FICCI) to explain the new CBAM simplification package. 'It's part of our climate agenda…CBAM induces this whole agenda of decarbonisation,' he said. Also Read: EU to accept Trump's universal 10% tariff, seeks exemptions on key sectors Delphin said it would be unfair to impose CBAM on European companies while allowing firms from outside to import high carbon content goods. 'We have engaged with partners, listened to partners, and we did several rounds here in India, took back the comments, and we adjusted,' he said. The EU is India's second-largest trade partner, accounting for trade in goods worth €120 billion in 2024, or 11.5% of India's total trade, while trade in services was worth €59.7 billion in 2023. Though India-EU trade in goods increased by nearly 90% in the past decade, India is the EU's 9th largest trade partner, accounting for 2.4% of the EU's total trade in goods in 2024, behind the US (17.3%), China (14.6%) and the UK (10.1%).
The Hindu
11-06-2025
- Politics
- The Hindu
Jaishankar welcomes European Parliament members' backing for stronger India-EU ties
External Affairs Minister S. Jaishankar has met leaders of the European Parliament and welcomed their support for 'stronger' India-European Union relations. Mr. Jaishankar, who met the leaders on Tuesday (June 11, 2025) during his visit to Belgium and Luxembourg, also praised their understanding of India's right to defend itself against terrorism. He had a 'pleasure interacting' with European Parliament members Angelika Niebler, Urmas Paet, Pilar del Castillo, Vladimir Prebilič, and Winkler Gyula, the Minister said in an X post. 'Welcomed their support for stronger India-EU ties. Also appreciate their understanding of India's right to defend itself against terrorism,' he said, adding that they 'exchanged perspectives on global developments and regional issues.' Earlier in the day, he also called on Belgian Prime Minister Bart De Wever and met King Philippe of Belgium. Mr. Jaishankar also met European Commission President Ursula von der Leyen and praised her 'strong condemnation' of the Pahalgam attack and solidarity in combating terrorism. The April 22 Pahalgam terror attack claimed 26 lives, following which tensions between India and Pakistan escalated. India carried out precision strikes on terror infrastructure in Pakistan and Pakistan-occupied Kashmir on May 7, 2025.
Time of India
09-06-2025
- Business
- Time of India
S Jaishankar welcomes Belgium's support and solidarity in combatting terrorism
BRUSSELS: External affairs minister began his visit to Belgium on Monday with a meeting with deputy prime minister and foreign minister Maxime Prevot. The discussions focused on enhancing bilateral cooperation and combating terrorism. Tired of too many ads? go ad free now He appreciated Belgium's support in combating terrorism and welcomed their solidarity and emphasised the strong momentum in the India-EU partnership, highlighting the potential for collaboration in clean energy, mobility, and pharmaceuticals. The two leaders discussed deepening cooperation in areas such as trade, investment, technology, defense, and security. Sharing the details in a post on X on Monday, EAM said, "Pleased to meet DPM & FM @prevotmaxime at the start of my visit to Belgium. Welcomed Belgium's support and solidarity in combatting terrorism. Appreciated the strong momentum of our bilateral engagement and the India - EU partnership. Also held wide - ranging discussions on deepening our cooperation including in trade, investment, technology, defence & security, pharmaceuticals, clean energy and mobility. " Jaishankar's visit to Brussels comes three months after Princess Astrid of Belgium led a 300-member economic mission to India. The recent visit by Princess Astrid, who met with Prime Minister Narendra Modi and Jaishankar, discussed key areas such as labor migration, pharmaceuticals, defense, diamonds, space exploration, and green energy. Interestingly, Jaishankar's visit coincides with the detention of fugitive Indian diamantaire Mehul Choksi in a Belgian jail. Choksi, accused of defrauding Punjab National Bank of Rs 13,850 crore, was arrested in mid-April on India's extradition request. Tired of too many ads? go ad free now India has an extradition treaty with Belgium, and the government is likely to pursue Choksi's extradition during the EAM's visit. Jaishankar is on an official visit to France, the European Union (EU), and Belgium from June 8 to 14, 2025, the Ministry of External Affairs announced in a press release on Sunday. The visit marks a significant step in further strengthening India's strategic partnerships with Europe. The EAM will first travel to Paris and Marseille, France, where he will hold bilateral discussions with the Minister for Europe and Foreign Affairs of France, Jean Noel Barrot. The EAM will hold a Strategic Dialogue with the EU High Representative and Vice President Kaja Kallas. According to the MEA press release, "India-European Union strategic partnership has strengthened over the years across diverse sectors and got a big boost with the first-ever visit of the EU College of Commissioners to India in February this year." Jaishankar will also meet senior leadership from the European Commission and European Parliament and interact with think tanks and media. MEA in its statement noted that the Belgium leg would also see the EAM meet members of the Indian community during his visit. The MEA highlighted, "India and Belgium share warm and friendly relations along with a very robust economic partnership. Today the collaboration between the two countries spans various domains like trade and investment, green energy, technology, pharmaceutical, diamond sector and strong people-to-people ties." The Ministry of External Affairs emphasized that the visit is expected to further deepen India's friendly relations with the European Union, France and Belgium and give renewed momentum to ongoing cooperation in diverse areas.
India Gazette
09-06-2025
- Business
- India Gazette
S Jaishankar welcomes Belgium's support and solidarity in combatting terrorism
Brussels [Belgium], June 9 (ANI): External Affairs Minister Dr S Jaishankar began his visit to Belgium on Monday with a meeting with Deputy Prime Minister and Foreign Minister Maxime Prevot. The discussions focused on enhancing bilateral cooperation and combating terrorism. He appreciated Belgium's support in combating terrorism and welcomed their solidarity and emphasised the strong momentum in the India-EU partnership, highlighting the potential for collaboration in clean energy, mobility, and pharmaceuticals. The two leaders discussed deepening cooperation in areas such as trade, investment, technology, defense, and security. Sharing the details in a post on X on Monday, EAM said, 'Pleased to meet DPM & FM @prevotmaxime at the start of my visit to Belgium. Welcomed Belgium's support and solidarity in combatting terrorism. Appreciated the strong momentum of our bilateral engagement and the India - EU partnership. Also held wide - ranging discussions on deepening our cooperation including in trade, investment, technology, defence & security, pharmaceuticals, clean energy and mobility.' Jaishankar's visit to Brussels comes three months after Princess Astrid of Belgium led a 300-member economic mission to India. The recent visit by Princess Astrid, who met with Prime Minister Narendra Modi and Jaishankar, discussed key areas such as labor migration, pharmaceuticals, defense, diamonds, space exploration, and green energy. Interestingly, Jaishankar's visit coincides with the detention of fugitive Indian diamantaire Mehul Choksi in a Belgian jail. Choksi, accused of defrauding Punjab National Bank of Rs 13,850 crore, was arrested in mid-April on India's extradition request. India has an extradition treaty with Belgium, and the government is likely to pursue Choksi's extradition during the EAM's visit. Jaishankar is on an official visit to France, the European Union (EU), and Belgium from June 8 to 14, 2025, the Ministry of External Affairs announced in a press release on Sunday. The visit marks a significant step in further strengthening India's strategic partnerships with Europe. The EAM will first travel to Paris and Marseille, France, where he will hold bilateral discussions with the Minister for Europe and Foreign Affairs of France, Jean Noel Barrot. The EAM will hold a Strategic Dialogue with the EU High Representative and Vice President Kaja Kallas. According to the MEA press release, 'India-European Union strategic partnership has strengthened over the years across diverse sectors and got a big boost with the first-ever visit of the EU College of Commissioners to India in February this year.' Jaishankar will also meet senior leadership from the European Commission and European Parliament and interact with think tanks and media. MEA in its statement noted that the Belgium leg would also see the EAM meet members of the Indian community during his visit. The MEA highlighted, 'India and Belgium share warm and friendly relations along with a very robust economic partnership. Today the collaboration between the two countries spans various domains like trade and investment, green energy, technology, pharmaceutical, diamond sector and strong people-to-people ties.' The Ministry of External Affairs emphasized that the visit is expected to further deepen India's friendly relations with the European Union, France and Belgium and give renewed momentum to ongoing cooperation in diverse areas. (ANI)
