New Delhi: Ahead of the visit of US President Donald Trump, India on Wednesday said that neither sides want to rush into a trade deal on eve of Trump's visit, adding that the deal is not stuck yet. According to a government source both the countries want to reach an understanding with outcomes that balances both sides and the US and India don't want to rush into the deal as the issues are complicated.
"The decisions will have an impact on people's lives and long term economic consequences," added the government source. The source also added, "We look to the future and seek to achieve a win-win solution for both sides and as we do that we don't want compromises and are not in a hurry to rush into a trade deal on the eve of the visit".
Asked, if the deal is stuck, the source said, "Not correct to say India-US trade deal is stuck. It is an ongoing process. The ministers from both sides have agreed to talk and look at a larger free trade agreement."
Earlier, Trump said that he looked forward to a major trade deal later. "Well, we can have a trade deal with India, but I’m really saving the big deal for later on. We’re doing a very big trade deal with India. We’ll have it. I don’t know if it’ll be done before the election, but we’ll have a very big deal with India."
India-US trade has been growing more than 10 per cent per annum over the past two years and the trade deficit has been declining. It is expected to get reduced as New Delhi will import more US oil, gas and purchase of civilian planes. The US is India's sixth largest importer of crude oil and India is now its 4th largest customer.
India is also keen that the US restores Generalized System of Preferences (GSP), which is Washington's largest and oldest US trade preference program by was withdrawn in 2019 for India.
