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The US 2021 President’s Trade Agenda and 2020 Annual Report

Topics Covered: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

The US 2021 President’s Trade Agenda and 2020 Annual Report:


Context:

It is an annual report submitted by the U.S. Trade Representative (USTR) to the US Congress.

Key observations made by the USTR:

  1. While India’s large market, economic growth, and progress towards development make it an essential market for many U.S. exporters, a general and consistent trend of trade-restrictive policies have inhibited the potential of the bilateral trade relationship.
  2. Recent Indian emphasis on import substitution through a “Make in India” campaign has epitomised the challenges facing the bilateral trade relationship.
  3. The report describes the Trump administration’s revocation of India’s preferential trading status under the Generalised System of Preferences (GSP) program in June 2019 and the ensuing discussion to achieve a mini trade deal (“package”) throughout 2020.

About the Make in India campaign:

  • Launched by Prime Minister Modi in 2014 to incentivise production in India.
  • It seeks to encourage manufacturing in India and galvanize the economy with dedicated investments in manufacturing and services.

To achieve it’s goal, targets were identified and policies outlined.

  1. To increase the manufacturing sector’s growth rate to 12-14% per annum in order to increase the sector’s share in the economy.
  2. To create 100 million additional manufacturing jobs in the economy by 2022.
  3. To ensure that the manufacturing sector’s contribution to GDP is increased to 25% by 2022 (revised to 2025) from the current 15-16%.

Sources: the Hindu.