India-US Interim Trade Deal: A Step Towards Global Competitiveness

Following the recent agreement on an interim trade deal between India and the United States, there is a renewed focus on trade openness and structural reforms in India to bolster its manufacturing base and international competitiveness, according to a report by Systematix Group.

The report highlights that India should address inverted duty structures, streamline logistics, customs processes, and promote assembly-based manufacturing to achieve scale and create employment opportunities.

Moreover, it stresses reducing protectionism, expanding free trade agreements, and enhancing research and development while easing land, labor, and skills constraints. The interim US-India Bilateral Trade Agreement, established on February 7th, provides a framework for broader trade cooperation, offering tariff relief for Indian exports in textiles, apparel, and other sectors.