New Delhi, Oct 16: India is hopeful that the proposed trade agreement with the United States will be concluded soon, Finance Minister Nirmala Sitharaman said on Friday, October 16. She said the agreement would benefit global trade and strengthen economic ties between the two countries.
Speaking on the sidelines of the IMF-World Bank annual meetings in Bangkok, Thailand, Sitharaman expressed optimism about the ongoing negotiations. Her comments came a day after Commerce and Industry Minister Piyush Goyal said the first phase of the India-US trade deal had been finalised and was undergoing legal drafting.
India-US Trade Agreement Nears Completion
Sitharaman said India wanted the trade agreement to be concluded at the earliest in the interests of both countries. She noted that negotiations had been progressing and expressed hope for an early conclusion.
The proposed India-US trade pact is expected to strengthen bilateral economic cooperation and support trade between the two major economies. However, the final agreement will depend on the completion of the remaining formalities.
India Raises Concerns Over Trade With China
Sitharaman also highlighted India’s concerns over its growing trade imbalance with China and the difficulties Indian businesses face in accessing the Chinese market.
She said India had repeatedly sought better market access in China for products such as generic medicines, bovine meat, vegetables and other perishable goods. However, progress had remained limited despite years of discussions.
According to the Finance Minister, non-tariff barriers remain one of the biggest obstacles to trade between India and China.
She pointed to phytosanitary measures and other restrictions that affect the entry of Indian products into the Chinese market. Sitharaman said these issues could be addressed through discussions and investigations.
She added that India had generally preferred negotiations over punitive tariffs to address major trade imbalances, even when negotiations took considerable time.
BRICS Should Focus on Cooperation, Says Sitharaman
Commenting on BRICS, Sitharaman said the grouping should focus on improving people’s welfare and strengthening economic cooperation rather than acting against any particular country or international bloc.
She said BRICS should be viewed as a partnership that creates opportunities for its member countries.
The Finance Minister highlighted the group’s large share of the global population and said cooperation among members could improve trade, strengthen mutual understanding and expand economic opportunities.
She also noted that the expanded grouping had brought more countries into active engagement, creating opportunities for broader economic cooperation.
India Maintains Strong Economic Growth
Sitharaman said India had continued to record strong economic growth despite global disruptions. She described India as the world’s fastest-growing major economy over the previous four to five years, particularly in the period following the COVID-19 pandemic.
She attributed the country’s economic performance to inclusive growth, improved access to resources, skill development among young people, fiscal discipline and higher public capital expenditure.
According to the Finance Minister, these factors have helped India maintain economic momentum despite challenges in the global economy.
Infrastructure Spending Supports Economic Activity
Sitharaman also defended the government’s focus on public investment in infrastructure, saying it had generated a stronger economic multiplier effect than transferring equivalent amounts directly to individuals.
She explained that infrastructure investment supports employment, creates demand for goods and services, and encourages wider economic activity.
The Finance Minister added that public infrastructure spending could channel money into the economy through job creation and business activity without placing the same pressure on the fiscal deficit as some alternative forms of expenditure.
Government Borrowing Focuses on Asset Creation
Sitharaman said government borrowing was broadly aligned with infrastructure expenditure. She argued that borrowing to create productive assets could deliver long-term economic benefits.
According to her, investments in infrastructure help build assets that support economic growth while generating employment and improving economic activity.
She maintained that India’s approach to public investment had helped the economy benefit from debt-financed asset creation.
Conclusion
India is looking to conclude its trade agreement with the United States at the earliest, while continuing to address market access challenges with China. Finance Minister Nirmala Sitharaman also stressed the importance of BRICS cooperation, infrastructure investment and fiscal discipline in supporting India’s economic growth.
Her remarks underline India’s focus on expanding international trade partnerships, strengthening domestic economic activity and maintaining growth amid global uncertainty.
