India-US 5th Commercial Dialogue meeting held in New Delhi

Tags: International Relations International News

The India-US Fifth Commercial Dialogue meeting was held in New Delhi on 10 March. 

An overview of the news

• The meeting was attended by Union Commerce and Industry Minister Piyush Goyal and US Commerce Secretary Gina Raimondo.

• The two leaders acknowledged that bilateral goods and services trade is set to almost double since 2014, surpassing a recorded US$ 191 billion in 2022.

• Both sides welcomed the steps taken to enhance their commercial cooperation and tap the market potential in several sectors.

• Both sides welcomed the efforts being made to enable an environment for investment by small and medium-sized industries and startups.

• Both ministers recognized that small businesses and entrepreneurs are the lifeblood of the US and Indian economies.

• In this context, both sides announced the launch of a new working group on talent, innovation and inclusive growth under the Commercial Dialogue.

• It will take forward cooperation on start-ups, SMEs, skill development and entrepreneurship, including digital and emerging technologies.

• An MoU was signed between the two countries on establishing a semiconductor supply chain and innovation partnership under the framework of the Indo-US Commercial Dialogue.

India-US Commercial Dialogue

• It aims to facilitate trade and maximize investment opportunities in a wide range of economic sectors.

• The last India-US commercial dialogue was held in February 2019.

• Since then, it could not be held due to the pandemic and other factors.

• After a gap of three years, it is proposed to relaunch the commercial dialogue with a strategic approach with a focus on supply chain resilience and diversification and new emerging sectors.

India- US trade relation

• According to the Ministry of Commerce and Industry, India is the ninth largest trading partner for the US, while the US is India's largest trading partner and largest export destination.

• During the calendar year 2022, bilateral trade in goods is expected to increase significantly, crossing USD 131 billion, thus doubling from 2014 (in 8 years).

• The US is also the third largest source of foreign direct investment (FDI) for India, and the US is among the top five investment destinations for India.