India considers the intention of the US administration under President Donald Trump to negotiate bilateral free trade agreements to expand market access as a positive for the republic, the Business Standard newspaper reported, citing officials.
“This is a positive approach as the US is considering the possibility of working with countries to conclude sectoral and bilateral free trade agreements where there are synergies“, the source noted.
According to the trade policy memorandum signed by Trump, the US government will identify countries with which agreements can be concluded on a bilateral or sectoral basis to provide access to the export market for American workers, farmers, service providers and other businesses.
The Indian Ministry of Commerce, according to the newspaper, is carefully studying the memorandum and holding inter-ministerial consultations to develop a strategy in response to the stated intentions of the US government. "We are studying the memorandum. Some elements mentioned there will have a positive impact on India. Our only concern is that India will suffer negative impacts. We will try to identify anything that could negatively affect our country", the official said, adding that India intends to monitor developments and "act only when necessary".
During Trump's first term as US president (2017-2021), India began a dialogue with Washington on a limited trade agreement. Despite significant progress, however, the agreement was not signed due to unresolved contentious issues. The Joe Biden administration, which took office in 2021, adopted a declared policy of not pursuing bilateral trade agreements.