How Trump influenced India’s trade policy & goods trade, Pg9

Key Highlights:

• The US and India announced a trade deal on Monday, lowering India's tariff rate from 50% to 18%.
• Donald Trump's administration raised concerns about the high goods trade deficit between India and the US.
• India's goods trade surplus with the US nearly halved to $1.73 billion in November from $3.17 billion in April.
• India's exports to the US decreased from $6.86 billion in August to $6.30 billion in October, while imports rose from $3.60 billion to $4.84 billion.

Detailed Insights:

• The 25% additional tariffs imposed by the US on India had strained relations and complicated trade deal negotiations.
• Despite tariffs, India increased crude imports from the US, with the US's share rising to 7.48% between April and October.
• US sanctions on Russian oil companies led to a decline in Russia's oil exports to India, with Russia's share decreasing from 37.88% to 32.18%.
• Indian public sector refiners signed a one-year deal for US liquefied petroleum gas (LPG) imports, amounting to around 10% of India's annual imports.
• India has opened its nuclear sector to foreign investments, aligning with the US's push for nuclear power plant expansion.

Key Concepts Involved:

• Tariff: A tax or duty imposed on goods when transported across international borders.
• Trade deficit: The amount by which the cost of a country's imports exceeds the value of its exports.
• LPG (Liquefied Petroleum Gas): A flammable mixture of hydrocarbon gases used as fuel in heating appliances, cooking equipment, and vehicles.