The United States wants to be a part of India’s economic growth and prosperity, said Assistant Secretary of State for South and Central Asian Affairs Donald Lu. The Biden administration recognizes the importance of India’s goal to grow its economy in an inclusive way and supports it strongly. A prosperous India would have more resources to address global problems such as climate change and future pandemics.
India is now a $3 trillion economy and one of the fastest-growing major economies despite the global economic downturn. The country aims to become a $10 trillion economy in a decade and a developed country by 2047. The US is proud to host more than 200,000 Indian students who are studying at US universities, which helps both economies expand.
The US goods and services trade with India totaled an estimated $146.1 billion in 2019 and jumped to over $192 billion in 2022. This year, the United States has surpassed China to become India’s largest trading partner. President Joe Biden, during his visit to India as the vice president, had set a bilateral trade goal of $500 billion per annum.
India-US Economic Ties
India-US economic ties have been strengthening over the years with at least half a dozen dialogue mechanisms. The India-US Trade Policy Forum and India-US Commercial Dialogue are the leading bilateral mechanisms to discuss trade-related matters. The CEO Forum meets on the sidelines of the India-US Commercial Dialogue and focuses on the recommendations from the forum, which feed into the commercial dialogue.
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The Information and Communications Technology, India-US Economic and Financial Partnership Dialogue, and Indo-Pacific Economic Framework (IPEF) are other dialogue mechanisms. The Joint Working Group on ICT was established in 2005 to bring together government and industry from both sides to discuss cooperation in the electronics and IT sectors. India-US Economic and Financial Partnership Dialogue is led by the Finance Minister and the US Treasury Secretary.
India joined the launch of the IPEF in May 2022 and is working with the 13 Partner countries to build an inclusive and flexible Indo-Pacific Economic Framework.
Deepening Cooperation on Emerging Technologies
The US is looking to deepen cooperation on the technologies of the future, from space to artificial intelligence to quantum computing, via the Initiative for Critical Emerging Technologies launched in January 2022. As the US and India bring their economies closer together, they also plan to collaborate on these emerging technologies.
Conclusion
The US recognizes India’s potential as a major economic power and wants to be a part of its growth and prosperity. The Biden administration supports India’s goal of growing its economy in an inclusive way, as it believes that a prosperous India would have more resources to address global problems. The US-India economic ties have been strengthening over the years, and the countries plan to collaborate on emerging technologies of the future.
Source: India Today
