NITI Aayog suggests services-focused trade deal with US

Amid ongoing negotiation between India and United States (US) over bilateral trade deal, NITI Aayog has suggested that the country should follow the model of the India-UK agreement to pursue a services-oriented trade deal with the US, with special focus on information technology, financial services, professional services, and education. It noted there will be significant opportunities for India in the US markets both in terms of the number of products and volume of the US market. Further, it has emphasized that India must advocate for improved visa access for its professionals, particularly under H-1B and L-1 categories. It added the deal should include provisions for intra-corporate transferees and independent service providers, which are crucial for maintaining India's competitive edge in the global services industry.
With growing global demand for Digitally Delivered Services (DDS), it said India should seek firm market access commitments from the US in high-growth areas such as cybersecurity, artificial intelligence, telecom, and design services. It pointed that leveraging India's strengths in these sectors can help increase bilateral trade and innovation-led growth. Moreover, it has emphasized the need of simplifying the licensing procedures and address cross-border data flow issues in order to ensure better market access to Indian firms, as the regulatory barriers such as inconsistent data compliance and intellectual property concerns hinder Indian service exports.
Additionally, NITI Aayog has suggested that India should focus on diversifying its trade partners and becoming integral to larger global supply chains and production networks. It highlighted that fast-tracking free trade agreements and time-bound negotiation roadmap with trade partners are essential and the agreements should be focused on reducing non-tariff barriers and facilitate smoother trade in services, which is a key strength for India. Simultaneously, it has proposed a deeper trade engagement with countries such as Australia, Japan, South Korea, and ASEAN nations, as this can be highly beneficial, particularly in sectors where India's export strengths, such as pharmaceuticals, automobiles, and IT, match their import needs.










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