India, US Begin Trade Talks for First Phase of Bilateral Deal
India’s economy showed signs of recovery in the third quarter of FY25, with a projected growth of 6.3%, according to a poll of economists. This rebound comes after an unexpected slowdown to 5.4% in the July-September 2024 quarter, primarily due to restricted government spending during the national elections. The model code of conduct had temporarily curtailed infrastructure investments, a key growth driver in recent years. For the full financial year, India’s GDP is expected to grow at 6.4%.
Shaktikanta Das Appointed Principal Secretary-2 to PM Modi
Reinforcing its economic focus, the central government has appointed Shaktikanta Das, former RBI Governor, as Principal Secretary-2 to Prime Minister Narendra Modi. Das, credited with guiding India’s financial sector through the COVID-19 pandemic, joins P.K. Mishra, who serves as Principal Secretary-1. His appointment highlights the government’s intent to prioritize economic stability and growth.
India’s Path to Becoming a High-Income Nation
A joint report by Bain & Co and Nasscom underscores that India needs to achieve an annual growth rate of 8-10% to transition into a high-income country with a projected GDP of $23-35 trillion by 2047. Titled ‘India@2047: Transforming India Into A Tech-Driven Economy’, the report attributes this transformation to India’s demographic advantage, technological progress, and sectoral shifts. By 2047, India’s GDP composition is expected to be:
- 60% from the services sector
- 32% from manufacturing
India-US Trade Talks Underway
The Indian government has begun preparations for upcoming bilateral trade agreement (BTA) talks with the United States, following discussions between PM Modi and former US President Donald Trump. The commerce department is consulting various ministries to analyze trade intricacies, sector-specific challenges, and India’s negotiating stance. Key areas of focus include tariff concessions, market access, and India’s strategic interests in the deal.
India-UK Trade Talks Resume
After a year-long pause, India and the United Kingdom have restarted negotiations on a Free Trade Agreement (FTA), a Bilateral Investment Treaty (BIT), and a social-security agreement. This deal could significantly boost trade relations, with projections suggesting that bilateral trade—currently at $20 billion—could double or even triple within the next decade.
With a renewed focus on economic growth and global trade partnerships, India is positioning itself as a key player in the global economy.
