New Delhi: India is in advanced talks with the United States to finalize a bilateral trade agreement, with the first phase expected to be signed by fall this year, Finance Minister Nirmala Sitharaman announced during a community event in San Francisco.
She emphasized that discussions on reciprocal tariffs are part of broader trade negotiations and expressed optimism about concluding the initial agreement soon.
Sitharaman highlighted Indiaโs proactive engagement with the US administration, noting high-level visits, including Prime Minister Narendra Modiโs trip in February and ongoing diplomatic exchanges. She also mentioned her scheduled meetings with US officials during her visit for the IMF and World Bank spring meetings.
Indiaโs Global Leadership and Economic Priorities
Addressing Indiaโs growing global influence, Sitharaman pointed to advancements in semiconductors, renewable energy, digital infrastructure, and AI. She stated that international institutions like the World Bank are keen to learn from Indiaโs digital public infrastructure model and skill development initiatives.
Reiterating the governmentโs focus on inclusive growth, she outlined PM Modiโs emphasis on uplifting four key groupsโthe poor, youth, farmers, and womenโas central to Indiaโs economic strategy. She stressed the importance of empowering women in the workforce, supporting small farmers, and leveraging Indiaโs demographic dividend through youth-focused policies.
Fiscal Discipline and Debt Management
On fiscal health, Sitharaman assured that India is on track to reduce its fiscal deficit below 4.5% by 2026, despite the challenges posed by the pandemic. She noted that the debt-to-GDP ratio, which peaked at over 62% post-Covid, has been brought down to 57.4% and is projected to decline further to around 50% by 2030.
Praising PM Modiโs fiscal prudence, she emphasized responsible spending, ensuring taxpayer money is used effectively for welfare schemes while maintaining macroeconomic stability. Indiaโs debt management stands in contrast to several developed nations with significantly higher debt levels, she added.
The Finance Ministerโs remarks underscore Indiaโs commitment to strengthening trade ties, fostering inclusive development, and maintaining fiscal sustainability as it positions itself as a key global player.
