Biden’s Iran policy will help Indian exports
President Joe Biden may revive the Trans Pacific Partnership and ask India to join the multi-lateral trade grouping which would exclude China, believes the Federation of Indian Export Organizations (FIEO).
Biden may also bring back GSP to the negotiating table as GSP, hoped FIEO, adding that more support from the new President for multilateral institution like WTO will benefit India which is not having many effective Free Trade Agreements (FTAs.)
The biggest beneficiary of the change under Biden policies is likely to be Iran which will not only help India to start its oil imports from Iran but will help Indian exports.
“Presently, we are only exporting food, pharma and medical equipment to Iran, on humanitarian grounds, under Rupee Trade Mechanism but money in the account is fast depleting. A restoration of trade ties with Iran can easily add about US$3 billion of exports from India raising it to over US$5 billion,” said FIEO in commentary on India-US trade on 10 Feb 2021.
Further, relaxation in H1B Visa is likely to benefit India’s IT and ITES exports and other services particularly under Mode 4, added the Indian exporters group.
FIEO feels that Biden would not believe that the trade is zero sum game and thus would not be unduly concerned with the trade deficit with India which US is having for over 20 years.
The trade deficit is now declining on year-on-year basis particularly as India is importing oil and gas from US besides aircraft and defence equipment, it pointed out.
FIEO expects Biden to bring stability and predictability to global trade and economy which itself will push global economy and global trade growth. #exports #economy #manufacturing #investments /fiinews.com
