The Big Picture - US - INDIA: Trade differences over Tariff

In this edition of the show we’ll discuss the issue of differences within India and US over tariffs. A day after one-on-one meeting with Union Commerce minister Suresh Prabhu, the US Commerce Secretary Wilbur Ross has accused India of imposing restrictive trade policies that burden foreign companies...
US President Donald Trump has for sometime taken an aggressive stance on the subject... the case in point being his frequent complaints about tariffs on Harley-Davidson motorcycles... The US also wants a cut in import duties for its agriculture goods, dairy products, medical devices, IT and communication items.
But, India has stated that it would be difficult for them to cut duties on IT products...
India has also countered the charges, pointing out that current tariffs were well within the threshold allowed under the World Trade Organization (WTO) rules... Other nations too had protected their industries by imposing much higher tariffs...
Anchor - Rajat Kain
Guests:
Jayant Dasgupta, Former Ambassador, WTO
Prof. Aman Agarwal, Director, Indian Institute of Finance
SK Sarkar, Executive Member, Indo-American Chamber of commerce

[@shashiketan]

Major Issues between India - US Trade:
- Data localisation - Visa, Amex, Mastercard
: companies ok with adjusting
- Price control on medical devices
: 4 of the items essential - NLEM list
major companies - stopped selling advanced stents in India
- E-commerce - inventory based
not allowed in India. Companies like Amazon & Walmart .
- Tariffs - Industrial tariffs NAMA: 93% of global trade
In India, Avg MFN tariffs - 9.9% , weighted 6.6% - industrial
MFN ~ 35%, weighted 20.6% agriculture.
Total ~ 7% , Arithmetic ~ 13% (different ways of looking at it)
US products to India - avg tariff they is less than 6.1% but we buy hydrocarbons, uncut diamonds & other raw materials.
India's Stance:
- Even foreign companies need gestation period when they come to India
- agriculture & agro based industries - need to protect
- tariff has been reduced in India largely compared to any other country.
- Services - amount directly go to US: Revenue gen at homeland but it doesn't get revenue
- US PPP ~ $60K, India PPP $7K
Harley davidson is a luxury product for India while its a common use product in US.
Tax structure in many country is based on Middle, Rich - diff perspective
There will be friction when trade increases. Trading is instrument of development
.
Potential room for development:
- $142.1bn trade
: Target ~ $500 bn - Big difference between target & achieved.
- Providing right business ambiance - Class action suit, bankruptcy, defamation.
- GSP tariffs we would lose ~ $130 mn
but cascading effect.
- India needs technology from America & we are a large market to US.
- 1.17 mn student international in US
- 50% India & Chinese : Indian youth want to be a part of global economy
benefit in training potential entrepreneurs
- Wine - US $35bn, France 1$6bn - Indian farmers can be a part of this gap: Partnerships
: technology + skilled labour
Critical for US to have a relook at their policies:
- domestic employment is losing to immigrants ready for more productive & work extra hours
Cooperative actions:
- H1B visas given a boost
: Could have restraint or kept at a negotiating factor.
- oil barriers - gave room to India
- tariff, tax, financing - trade component low? Debate, discussions needed

Small issues like tariff will be levered out once the trade is up. Looking at the potential between two giant economies its important to have more discussions & deliberations
to provide a better trading ecosystem between the countries.

[@dineshrathnam1833]

@Sashi Ketan .. You are doing a great job by posting summary on daily basis... 👍👍

[@ShubhamSharma-no8gv]

Thank you !!

[@annusingh5515]

Thnks shashi

[@jaggu706]

Tq shashi...

[@sumankannaujia]

👍

[@anupdhaye]

I'll advice host to be original instead of being typical mass media student. Why are you trying to speak stylish English. Speak like Frank ...Learn from him. Crystal clear and it convey to people.
@rstv.. do analysis of comments.

[@indianinstituteoffinanceii7360]

Very crisp anf relevant points raised by IIF Prof Aman Agarwal

[@ShiSu2524]

RSTV please remove this host from this show
Frank is right for this show
Thank you!

[@sapnarathi2390]

I prefer Frank as host.

[@shreyajaiswal2374]

same here!! Please make Frank a regular here.

[@aryanbihar]

Thanks RSTV

[@ShubhamSharma-no8gv]

Thank you RSTV !!

[@bharatiya-akp]

No one can match frank

[@zahoorkhawaja.]

Frank Parera come back......U way of anchoring is justifable and deserve to be there....

[@dworldlovesme]

it's very difficult to understand the host. please try to be clear

[@deepakryan5839]

Why does the host speak from nose with fake accent

[@amanjain8930]

Plzz change this host

[@santoshrai1114]

missing Frank rausan ...please let him host this show. he is the best anchor for this show to be watched . this show seems no more interesting without him.

[@KajalMishra-du1zr]

Please bring back ...Frank ...sir ....

[@RameshBabu-xo1mn]

please change the host

[@bharatiya-akp]

Take topic INDIA and CANADA beyond khalisthan

[@thelion.5427]

Very good. Trump will wreak Indian econmy. That's punishment for Nepal bloackade. Don't worry they will take care of your port in Iran soon.

[@letstalksuKoon010427]

first

[@shashankshukla8182]

Aditya Bhardwaj not that type of crowd here