After LNG, government may hike fertiliser imports from US

NEW DELHI: After LNG, govt is exploring the potential of rising fertiliser imports from the US because it seeks to deal with US President Donald Trump‘s considerations over the commerce stability being in India’s favour.
The transfer may even assist India scale back its dependence on international locations, resembling China and Russia, that are among the many prime sources of shipments. In truth, like oil, fertiliser imports from Russia shot up, following sanctions on Moscow within the wake of the Ukraine warfare. As a end result, India’s commerce deficit with Russia grew manifold.
India depends closely on imported fertilisers, valued at $8.3 billion over the past monetary yr, with the US having a minuscule share, with the worth of shipments pegged at $300,000. Last yr, India had a commerce surplus of over $41 billion with the US, whereas its items imports have been valued at $86.5 billion.

While the proposed bilateral commerce settlement with the US will concentrate on bridging the commerce hole by decreasing tariffs, govt can be importing extra American items, together with defence tools and oil and gasoline.
India is hoping that in return for gadgets of America’s pursuits, together with vehicles, whiskey and farm items, it will likely be capable of get higher entry for its labour-intensive exports, resembling leather-based and textiles merchandise.
Sixteenth Finance Commission chairman Arvind Panagariya stated a cope with the US will put India “incredibly favourably”, serving to it entice funding and increase manufacturing, whereas flagging labour and land reforms.
“India, itself, if it actually successfully negotiates a trade agreement with the US, will open a door a little wider to having an agreement with the EU and UK, that will place India in the global trade equation incredibly favourably,” he stated at an occasion organised by Isaac Centre for Public Policy. He stated the commerce restrictions by the US on China, Vietnam, and Cambodia will place India in a beneficial place.