India Risks Losing Trade Momentum Without Swift US Pact, Warns USISPF Chief Amid UK FTA Milestone
As India celebrates the historic Free Trade Agreement (FTA) with the United Kingdom—promising to eliminate tariffs on 99% of Indian exports and double trade within five years—concerns are rising over the lack of similar progress with the United States.
Dr. Mukesh Aghi, President and CEO of the US-India Strategic Partnership Forum (USISPF), has urged New Delhi and Washington to act fast before India finds itself sidelined in global trade realignments.
> “You don’t want India getting isolated while the rest of the world signs deals,” Aghi warned during an interview with Business Today TV.
He highlighted how countries like Japan, Vietnam, Cambodia, and the Philippines have already inked fresh trade agreements with the US, while the European Union is nearing its own. Even China is scheduled for upcoming trade talks with Washington in Scandinavia.
India-US Trade Talks: Still in the Early Stage
While the India-UK FTA is comprehensive and forward-looking, the US-India trade arrangement remains in a preliminary phase—mostly centered around tariff discussions.
> “This is only stage one,” said Aghi, contrasting it with the broader scope of the UK deal.
Currently, Indian exports to the US face a 10% tariff, which could rise to 26% after August 1 if no agreement is reached—a major hurdle for businesses that rely on bilateral trade and export-driven manufacturing.
> “That would create significant disruption, especially with US firms increasingly using India as a manufacturing base,” Aghi cautioned.
India Has Made Its Move—Now It’s Washington’s Turn
Aghi revealed that India has already submitted its proposal, and the ball is now in the US court.
> “India has put its best foot forward… it is on the desk of the president,” he stated, hinting at internal delays within the Biden administration.
He acknowledged India’s sensitivity around agriculture and dairy but encouraged pragmatic negotiations:
> “India can safeguard key staples like rice and wheat, but also consider flexibility in areas like soybeans and lentils where it doesn’t directly compete with the US.”
A Gateway to Bigger Opportunities
Beyond resolving tariff issues, Aghi believes a timely deal with the US could reinforce India’s position in global supply chains and drive foreign investment.
> “Indian companies invested over $40 billion in the US last year. They’re looking to scale that up to $500 billion over the next five years,” he noted.
With a US trade delegation expected in India next week, Aghi called for strong political intent.
> “The US president likes bold headlines. A deal that aims to take the US-India partnership to the $1 trillion mark could be just that,” he said.
