India Commits to Increased US Purchases as Trade Deficit Holds Steady

India has pledged to boost its purchases of U.S. industrial goods following Prime Minister Modi's visit to the United States. The January merchandise trade deficit reached $23 billion, aligning with economists' expectations. Exports for the month stood at $36.43 billion, while imports totaled $59.42 billion. Electronics goods are driving exports, followed by pharmaceuticals and rice. This commitment comes as part of ongoing trade negotiations between the two nations, with India aiming to reduce tariffs in certain sectors. The U.S. currently has a $45.6 billion trade deficit with India. Both countries have agreed to a "tough" timeline for the first tranche of a trade deal, focusing on increasing U.S. exports to India.

 

Source: The Economic Times