India, U.S. to double bilateral trade by 2030:

India, U.S. to double bilateral trade by 2030:

Static GK   /   India, U.S. to double bilateral trade by 2030:

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The Hindu: Published on 15th Feb 2025:

 

Why in News?

India and the U.S. have agreed to double their bilateral trade to $500 billion by 2030, covering key areas like trade, defence, technology, and energy. The U.S. has also approved the extradition of 26/11 accused Tahawwur Rana, while both sides agreed to enhance military cooperation, including the possible sale of F-35 stealth fighters to India.

 

Key Highlights-

Trade & Economy: India and the U.S. aim to negotiate a trade deal by 2025, with India increasing energy imports to reduce the U.S. trade deficit.

Defence Cooperation: A 10-year defence framework was announced, including negotiations for F-35 fighter jets and six P-8I Maritime Patrol aircraft for India.

Technology & Energy: India to boost oil and gas imports from the U.S. and explore Small Modular (nuclear) Reactors.

Extradition of Tahawwur Rana: The U.S. has cleared the path for extraditing 26/11 Mumbai attack accused Tahawwur Rana to India.

Border Tensions with China: The U.S. offered to "help" India with its border issues with China.

Defence Procurement: Both countries to align procurement systems and ease U.S. arms transfer regulations for India.

 

Impact & Implications-

Economic Growth: Doubling trade will boost industries, job creation, and investments in both nations.

Energy Security: India’s increased energy imports will help meet its growing demands and reduce reliance on other suppliers.

Defence Modernization: Procurement of advanced defence equipment (F-35, P-8I aircraft) strengthens India’s military capabilities.

Geopolitical Influence: Strengthened India-U.S. ties counterbalance China’s growing assertiveness in the Indo-Pacific.

Counterterrorism: Rana’s extradition marks progress in India’s fight against terrorism and strengthens legal cooperation.

 

Challenges & Concerns-

Trade Deficit & Tariffs: The U.S. President criticized India’s tariffs as “unfair,” and negotiations may take time to balance trade relations.

Technology Transfer Restrictions: The U.S. ITAR (International Traffic in Arms Regulations) could limit India’s access to sensitive defence technology.

China’s Reaction: India’s closer ties with the U.S. may provoke stronger responses from China, especially regarding border issues and military alliances.

Political Uncertainty: Future U.S. administrations might revise trade and defence policies, affecting long-term agreements.

 

Way Forward-

  • Finalize trade negotiations to ensure balanced economic benefits.
  • Strengthen energy cooperation by investing in renewable and nuclear energy projects.
  • Enhance defence partnerships through co-production and technology-sharing agreements.
  • Maintain diplomatic balance to manage relations with China while deepening strategic ties with the U.S.

This agreement marks a significant step in India-U.S. relations, with far-reaching implications for trade, defence, and global geopolitics.

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