Sitharaman Says India-US Trade Deal Will Be Finalised Soon

Finance Minister Nirmala Sitharaman has expressed hope that India and the United States will conclude their proposed trade agreement soon, saying the deal would benefit bilateral economic relations and global trade. Sitharaman said negotiations between the two countries were continuing and that an early conclusion would serve the interests of both trading partners.

She referred to recent remarks by Commerce and Industry Minister Piyush Goyal, who said the first phase of the India-US trade agreement had been finalised and was undergoing legal drafting. On India-China trade relations, Sitharaman highlighted persistent concerns over the widening trade imbalance and difficulties faced by Indian exporters in accessing the Chinese market. She said India had sought greater access for products including generic medicines, bovine meat, vegetables and other perishable goods, but progress had remained limited despite years of engagement.

Speaking at an interaction organised by the Atlantic Council on the sidelines of the IMF-World Bank annual meetings in Bangkok, Thailand, she identified non-tariff barriers as a major obstacle to trade between the two countries. She said restrictions involving phytosanitary measures and other regulatory requirements continued to affect Indian exports. Sitharaman added that India had generally preferred negotiations over punitive tariffs to address trade imbalances, even when resolving such issues took considerable time.

Discussing BRICS, the finance minister said the grouping should focus on improving people's welfare and strengthening cooperation among member countries rather than positioning itself against another country or economic bloc. She noted that the group's members represented a substantial share of the world's population and had opportunities to expand trade, improve mutual understanding and create economic opportunities.

Turning to India's economic performance, Sitharaman said the country had maintained strong growth despite global disruptions and had remained the world's fastest-growing major economy over the past four to five years, particularly in the post-pandemic period. She attributed this performance to inclusive development, improved access to resources, skill development for young people, fiscal discipline and increased public investment in infrastructure.

The finance minister also defended the government's emphasis on infrastructure spending, arguing that public capital expenditure generates economic activity, creates employment and produces benefits beyond the initial investment. According to Sitharaman, infrastructure spending can have a stronger multiplier effect than equivalent direct cash transfers, as it supports businesses, jobs and wider economic activity while contributing to the creation of long-term public assets. She said government borrowing had largely supported infrastructure development, helping build assets that could deliver lasting economic benefits. Sitharaman maintained that this approach had supported India's growth while keeping fiscal considerations in view.

Disclaimer: This image is taken from PTI.