Prelims Syllabus : Mains Syllabus :
- India being one of the country with which US has a large trade deficit of around $2 billion.
- US now singles out India and want to increase the import of oil and shale gas and other energy resources from it.
- India sends more of its STEM workers to US and students opt to study in US.
- This in turn being an investment in the US economy which India tries to recognise it and Indian STEM workers have been contributing to the US economy.
- US service sector wants the H1B visa norms to be eased so that Indian workers and others can be easily recruited.
- This policy is indeed a contrary to the Trump administration of America’s first’ approach.
Imports and Export
- The US is India’s second largest trading partner and India is the 9th largest trading partner.
- Major items imported from India include IT services, textiles, machinery, gems and raw diamond, chemical’s, iron and steel products.
- The Trump administration has increased the duty of aluminium and Iron and steel to 10% and 20% from the countries like India and China.
- India is not in favour of the retaliatory tariff or going to WTO.
- Instead India wants to resolve the issue bilaterally to engage with US and 2 plus 2 dialogue is one such platform.
- Import of oil from Iran is the bone of contention with UN sanctions hitting imports this year , Iran being geographically closer to India and Iran oil is much more cheaper.
- India does not want US to dictate policies for her priority for which India should explore more diplomatic platform to address this issue.