US Commerce Secretary Wilbur Ross said on Monday he Proposed to discuss India’s new e-commerce rules Which could have an impact on operations of Companies such as Amazon and Walmart Together with his Indian counterpart on Monday.
Ross is visiting New Delhi at a time when India and the USA are locked in disputes over tariffs, price caps India has imposed on imported US medical apparatus, and more than rules banning companies from selling products via companies where they have an equity interestrate.
India also prohibits companies from making trades with vendors to sell exclusively on their own platforms, rules which could impact investment strategies of foreign firms in India’s fast-growing marketplace set to touch $200 billion (approximately Rs. 14 lakh crores) from 2027.
Ross told reporters he’d talk about e-commerce with India’s trade ministry, Suresh Prabhu.
“We are negotiating and we need there to be a breakthrough since India has bets and they are one of the greatest partners and this is a chance to de-escalate tensions,” one of the sources mentioned.
In March, US President Donald Trump announced plans to finish preferential trade treatment for India that allows duty-free entry for up to $5.6 billion (roughly Rs. 39,000 crores) worth of its exports to the United States.
India is the world’s largest holdings of the trade concession, known as the Generalised System of Preferences (GSP), and its withdrawal would be the most powerful punitive action against the nation because Trump took office in 2017.
India wants the United States to review its own decision on GSP and also hopes it will defer its decision to draw trade statements until India’s general elections are over on May 19, one of the sources said.
Political and security ties between India and the United States of America have grown but trade has come to be a problem. Indian officials said both sides will emphasise strategic ties and try to manage trade differences.
“The messaging is a re-assurance the US believes of India as a strategic partner and the relationship cannot be colored by differences on trade,” one of the sources said.
Total US trade with India stood at $87.5 billion in 2018, with the deficit at $21.3 billion.
India has held off execution of new tariffs on US products after Washington refused to provide it an exemption on higher steel responsibilities.