WASHINGTON: Restoration of India's Generalized System of Preferences (GSP) status by US President-elect Joe Biden and Washington quickly closing a small trade deal with it would send a very strong signal to New Delhi, according to the head of a top India-centric American business advocacy group.

 

Mukesh Aghi, President of US India Strategic and Partnership Forum (USISPF), said that India and the US should close a small trade deal as a quick win and start focusing on the bigger issues.

 

Commerce and Industry Minister Piyush Goyal in September said most issues preventing a limited trade deal between India and the United States have been resolved and an agreement could be signed anytime the political situation in the US allows it.

 

India is seeking exemption from high duties imposed by the US on some steel and aluminium products, resumption of export benefits to certain domestic products under the GSP, and greater market access for its products from sectors such as agriculture, automobile, automobile components and engineering.

 

On the other hand, the US wants greater market access for its farm and manufacturing products, dairy items and medical devices, apart from cut in import duties on some information and communication technology products.

 

As Vice President of the US from 2009 to 2017, Biden among other things had emphasised on increasing trade relationships between the two countries. In fact, he had set an ambition goal of increasing the bilateral trade to USD 500 billion at a time when it was around USD 100 billion per annum. Five years later, the trade now is USD 150 billion per annum.