A robust economic relationship Â
Context: Under the new U.S. administration, the economic relationship with India can be expected to be on the radar as India has enjoyed bipartisan support in the U.S. A closer economic partnership would bring gains to both sides in terms of GDP, employment, and productivity, given the complementary natures of their economies.
Areas for collaboration:
- A collaborative response to the pandemic would contribute to global containment of the virus.
- As India becomes the hub of global vaccine distribution, building confidence in the Indian IPR regime, reviving the S.-India Health Dialogue, and mutually recognising standards and approvals will help drive healthcare exchanges.
- The macro trade architecture can be strengthened with a broad trade agreement focusing on resolving the low-hanging fruit.
- The S.-India Trade Policy Forum meetings can be revived along with a cross-sector track-2 group to look at convergence on issues such as market access.
- There is potential for flexibility from both sides for restoring the Generalised System of Preferences which would help lower duties for certain Indian products.
- The two countries should consider initiating discussions on a free trade agreement.
- Mobility of professional labour would aid trade in services.
- Recent regulations in the U.S. have impacted labour mobility which can be addressed through immigration reforms for employment-based visa backlogs and smooth and timely processes.
- The MoU on labour cooperation signed in 2011 could be updated in line with India’s recent labour regulatory changes.
- This may also be a good time to reconsider a totalisation agreement pertaining to social security, given that both have already entered into such agreements with many of the same partner countries.
- Defence industry ties can be stepped up in coordination with industry, as both sides benefit from U.S. technology and Indian manufacturing in this sector.
- A defence dialogue including the private sectors of both sides could help in co-production and co-development in the defence and aerospace sectors.
- Engagement of small and medium enterprises (SMEs) can be stepped up.
- Smaller U.S. companies can find significant new opportunities for investments in India and sourcing from India.
- A S.-India SME CEOs Forum can be set up to catalyse such partnerships.
- Clean energy and climate change, high priorities of the U.S. administration, are also areas where India has made rapid strides.
- The S.-India Strategic Energy Partnership should be geared towards joint investments in industrial decarbonisation, carbon dioxide removal and green hydrogen.
- The programmes of Partnership to Advance Clean Energy Research, Partnership to Advance Clean Energy Deployment and Promoting Energy Access through Clean Energy must be relaunched.
- A digital economy partnership is critical.
- India has proved its mettle in this space with new opportunities opening up in robotics, space, AI and electric vehicles.
- It is also important to disseminate information on India’s IPR regime improvements and work towards taking India off the U.S. Trade Representative IPR priority watchlist.
https://www.thehindu.com/todays-paper/tp-opinion/a-robust-economic-relationship/article34087199.ece