Deal on medical devices, farm products likely during US President Trump’s India visit
One of the highlights of the visit is expected to be a public event featuring Trump and Prime Minister Narendra Modi, though there is a question mark on whether the US president will travel to locations other than New Delhi during his short visit, said the people who declined to be identified.
India and the US are finalising a limited trade package, centred around medical devices and agricultural products, that is expected to be unveiled during President Donald Trump’s visit in the third week of this month, people familiar with development said on Tuesday.
The final touches will be given to the package when US Trade Representative Robert Lighthizer visits New Delhi early next week for talks with Indian interlocutors, including commerce minister Piyush Goyal, the people added on condition of anonymity.
One of the highlights of the visit is expected to be a public event featuring Trump and Prime Minister Narendra Modi, though there is a question mark on whether the US president will travel to locations other than New Delhi during his short visit, said the people who declined to be identified.
As reported earlier by HT, Trump is set to visit India sometime between February 21 and February 24. Over the past few weeks, both sides have been busy hammering out the trade package so that it can be presented as a tangible outcome of the visit.
“The trade package will centre around medical devices such as stents and agricultural products,” said a person familiar with planning for the visit. India and the US have sparred over the pricing of medical devices and access to US agricultural imports.
The negotiations are going well and some mutual understanding is expected before the visit, two Indian officials from two different ministries said on condition of anonymity. “The US is an important trade partner and the two sides are negotiating various issues of mutual interest,” one of the officials said.
The Indian officials said the trade package will focus on mutual gains as India cannot make decisions under any pressure that go against the interests of farmers or retailers. The same philosophy was articulated in the budget presented on February 1, they said.
The US is keen on increased and hassle-free access to Indian markets for agricultural products, such as dairy items, and medical devices, including knee implants and stents. It wants India to remove tariff and non-tariff barriers for key exports and is willing to reciprocate in the same proportion, the two Indian officials said.
As part of the trade package, India expects the reinstatement of benefits under the Generalized System of Preferences (GSP) scheme, which were withdrawn last June. The scheme allowed zero tariffs on exports to the US worth $5.6 billion.
India is also willing to purchase more oil and gas from the US and talks are ongoing in this regard, one of the Indian officials said. Petroleum minister Dharmendra Pradhan recently said India will discuss long-term liquefied natural gas (LNG) deals during Trump’s visit as part of a strategy to promote a gas-based economy that may attract ₹4 lakh crore in investments over the next five years.
India’s top gas importer Petronet LNG and American LNG developer Tellurian are expected to sign a $2.5-billion deal during Trump’s visit for rights to up to 5 million tonnes of LNG a year, according to a Reuters report. Petronet will invest the money over five years in Tellurian’s proposed $27.5-billion Driftwood LNG export project in Louisiana and gas supplies will begin from 2024.
India has stepped up diversification of its oil sourcing to reduce over-dependence on imports from the volatile Middle East and plans to double imports from the US. Oil purchases from the US, which started in 2017-18, have already crossed 6 million tonnes, officials said.
US security and logistics teams have visited Agra and Ahmedabad as part of preparations for Trump’s visit, though it is yet to be finalised whether he will travel to locations other than New Delhi, the people cited above said.
“When you have a visit that isn’t of a very long duration, travelling to a second venue takes up time and adds to logistical issues,” said one of them.
Preparations for the visit have included looking at locations such as stadiums in New Delhi as a possible venue for the public event featuring Trump and Modi, the people said.
Former ambassador Rajiv Dogra said Trump will be a relieved man by the time he arrives as the impeachment trial is not expected to go against him. The visit will also have a “feel good factor such as a photo at the Taj Mahal” if the US president decides to travel to Agra, he said.
“But the important thing for India to ponder over is Pakistan holding the US to ransom over Afghanistan. Why are we so dependent on the US to set the agenda for the subcontinent? More than trade, strategic issues will decide the fate of the subcontinent,” he said.
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