Lok Sabha Question No. 3873 (UNSTARRED), answered on 2018-03-19
Subject: India-US Trade
Ministry: COMMERCE AND INDUSTRY
Asked by: DHARMENDRA YADAV, PRITAM GOPINATH MUNDE, Shrirang Appa Barne, SHRIKANT EKNATH SHINDE

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 3873 (H) TO BE ANSWERED ON 19 th  MARCH,2018

## INDIA-US TRADE

3873(H). SHRI DHARMENDRA YADAV: DR. PRITAM GOPINATH MUNDE: SHRI SHRIRANG APPA BARNE: DR. SHRIKANT EKNATH SHINDE:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether the United States (US) businesses and diplomats are pressing India to cut tariffs after New Delhi's move to increase customs duties on dozens of products to help its flagship Make-in-India drive aggravated differences over trade and if so, the details thereof and the response of the Government thereon;
- (b) whether the U.S. Congress has been pushing over the past year for greater pressure on  India  to  dismantle  economic  barriers  and  if  so,  the  details  thereof  and  the response of the Government thereon;
- (c) whether the Government has assessed the impact of increased custom duties on the investment in India;
- (d) if so, the details thereof along with the growth of bilateral trade between India and the US during the last the three years; and
- (e) the details of the gap of trade deficit with US along with the initiatives taken by the Government to bridge the said trade deficit?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- ( a) India has an established institutional mechanism in the form of Trade Policy Forum (coordinated by Department of Commerce) to resolve bilateral trade issues and also meetings  on  Trade  Facilitation  (coordinated  by  Ministry  of  Finance)  with  United States  (U.S.).  U.S.  regularly  raises  the  issue  regarding  reduction  of  Indian  tariffs rates.  Nevertheless,  it  is  to  mention  that  India  is  a  member  of  World  Trade Organisation  and  is  bound  by  the  commitments  made  at  WTO.  Indian  tariffs  are within the bound rate committed by India. Increase or decrease in tariff of a particular commodity depends on several factors which includes protection of domestic industry and farmers.
- (b) As mentioned above,the issues including market access that are raised by U.S. are discussed under existing institutional mechanisms Trade Policy Forum and Commercial Dialogue
- (  c  ) The  increase  in  tariff  rate  on  imports  in  to  India  and  the  investment  by  foreign companies are two different facets.
- (d) Facts: The bilateral trade figures are as below:

Goods

(In US$ Million)

|   S. No | Trade Indicators              | 2014-15   | 2015-16   | 2016-17   | 2017-18*   |
|---------|-------------------------------|-----------|-----------|-----------|------------|
|       1 | Export to USA                 | 42,448.66 | 40,335.82 | 42,212.00 | 35,263     |
|       2 | Import from USA               | 21,814.60 | 21,781.39 | 22,307.00 | 20,148     |
|       3 | Total Trade (Exports+Imports) | 64,263.26 | 62,117.21 | 64,519.00 | 55,412     |
|       4 | %Growth                       | 4.24      | -3.34     | 3.87      | 14.30      |
|       5 | Trade Balance                 | 20,634.05 | 18,554.44 | 19,904.00 | 15,114     |

Source: DGCIS Database [* April, 2017 to December, 2017 (P) figures and growth and share percentages worked onApril, 2016 to December, 2016 figures]

## Services

Source: US Census bureau, USA

(In US$ Million)

|   S. No | Trade Indicators   |   2014 |   2015 |   2016 |   2017* |
|---------|--------------------|--------|--------|--------|---------|
|       1 | Export to USA      |  22431 |  24610 |  25808 |   28677 |
|       2 | Import from USA    |  15325 |  18374 |  20632 |   23116 |
|       3 | Trade Balance      |   7106 |   6236 |   5175 |    5561 |

[*Jan, 2017 to Sep, 2017 (P) figures]

- ( e ) India has Trade Surplus with United States both on Goods as well as Services side, as depicted above.

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