Taranjit Sandhu, Indian ambassador to the US, says it’s a win-win proposition & ‘our leadership has given direction' to wrap up a smaller deal and then go in for a bigger FTA.

India Thursday said both New Delhi and Washington are now “nearer” to a smaller trade deal than ever before as the US believes a free trade agreement (FTA) is possible even as India has walked out the Regional Comprehensive Economic Partnership (RCEP).

India and the US have been discussing a limited trade deal since last year when Prime Minister Narendra Modi visited the US in September. But both sides could not agree to a deal, owing to several differences over tariffs on a range of goods that are being traded by both sides.

“This is a certainly win-win proposition for both of us and our leadership had given direction to both sides to quickly wrap up a smaller deal and then go in for a bigger FTA. A lot of ground has been covered and perhaps we are nearer to the smaller deal than ever before… A larger perspective and a broader vision has to be put in here,” said Taranjit Sandhu, Indian ambassador to the US, at the India Global Week. 

Sandhu was addressing a virtual session on ‘Partners in Revival: Time for Action’ moderated by Mukesh Aghi, president and CEO, US-India Strategic Partnership Forum.

“There are lots of areas, it is not just that only India has to send out a message of symbolism, I think this is a case of US too. This is a time to send out that message of balancing, of a win-win situation. Therefore, I hope both trade sides are able to finalise the smaller deal soon,” he added.

He also said it is “important to accommodate each other’s interest and to address issues of mutual concern” even as both sides explore new areas of cooperation.

India has been pushing the US to restore the trade benefits under its Generalised System of Preferences (GSP), which was suspended in June last year. 

“Trade and investment cooperation without doubt is an important dimension in our comprehensive global strategic partnership. Our bilateral trade has been growing at more than 10 per cent on a year-to-year basis… While growth is impressive, there’s no doubt that real potential is yet to be reached. There is opportunity in every crisis, including this one. This is time to reflect together on the global supply chains and how they can be refashioned and made more robust to withstand such crisis in the future,” Sindhu added.

Energy and defence trade will continue to be an important aspects in the two-way trade, Sandhu said, adding that the US and India will soon have the next round of energy talks. 

Source: The Print