The proposed India-US Bilateral Trade Agreement (BTA) is poised to become a benchmark for India’s future trade engagements with developed nations, according to a recent report by stock market advisory firm ACMIIL. The deal, once finalised, is expected to significantly reshape India’s global trade strategy by integrating trade with technological advancement and industrial development.
The report notes the agreement reflects a strategic pivot in India's trade policy — from mere market access to leveraging trade for acquiring cutting-edge technology while accelerating industrial growth and enhancing its stature in the global economy.
"Once the India-US BTA is sealed, it is likely to serve as a template for similar negotiations with other developed countries," said the report.
Importantly, the agreement aligns closely with national initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat,’ both aimed at boosting domestic manufacturing capabilities and decreasing dependency on foreign goods.
As part of the deal, India is expected to lower tariffs on certain American agricultural and food products. This would grant greater market access to US exporters while offering Indian consumers a wider variety of food options. In exchange, India would gain access to advanced American technologies in critical sectors such as defence, renewable energy, and high-end manufacturing — areas deemed vital for national growth and security.
The report also highlights that the pact will likely include provisions for regulatory collaboration, standards for digital trade, and stronger enforcement of intellectual property rights. These elements are intended to create a transparent and rules-based trading environment that fosters investment and business certainty.
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Amid these developments, India’s economic momentum remains robust. Rising employment levels and improved consumer sentiment are driving domestic consumption. At the same time, government-led capital expenditure and tax reforms are encouraging private-sector investments.
With nearly half the population in the working-age group, rising household incomes are fueling demand for convenience-driven products. India continues to maintain its status as the fastest-growing major economy and is projected to join the ranks of the world’s top three economies in the near future.
Moreover, as global supply chains undergo diversification, India is well-positioned to become a central hub. The report projects a healthy GDP growth rate of 6.5 per cent for the financial year 2025–26, supported by strong macroeconomic fundamentals.
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