Which countries are the biggest winners from the new US-India Trade Deal?
Posted On July 18, 2021
New Delhi, Feb. 23 (ANI): India has been the biggest winner of the US-China Free Trade Agreement (FTA) signed in New Delhi on Friday.
According to an analysis of data from the Ministry of Commerce, India received a total value of US$2.07 billion in goods and services exports and a value of $2.17 billion in services exports during the year as compared to $1.79 billion and $1 billion respectively during the same period last year.
India also benefited from the lower prices of Chinese manufactured goods in India and other countries.
The trade agreement is the most comprehensive trade deal in the world, covering nearly 90 per cent of the world’s population.
Under the agreement, India has to pay a 2 per cent tax on all imported Chinese goods and on all imports of Chinese made goods, which is currently 0.3 per cent.
Under a similar deal signed by the US and Canada, the tax is to be 0.5 per cent for goods made in China, which currently stands at 0.25 per cent and is being reduced to 0.1 per cent on imports from India, according to the Department of Commerce.
India has also been a beneficiary of the new FTA since it is the first country to sign a FTA with the US.
India is also the second largest beneficiary of US trade agreements with China, with an average value of about US$7.8 billion annually.
According in the report, India’s total value added from January 1, 2018 to December 31, 2019 was $2,000 billion.
The country’s exports were worth $2 billion and imports were worth US$1.6 billion.
The country’s trade deficit with China was US$935 million during the period.
The total value, trade deficit and value added by India was US $3.8 trillion during the three-year period.