New Delhi— Veteran global investor Mark Mobius on Wednesday said that a free trade agreement between India and the United States would significantly benefit India, citing the cordial relationship between Prime Minister Narendra Modi and former U.S. President Donald Trump.
Mobius, who manages the Mobius Emerging Markets Opportunities Fund, told IANS that while the global economy may face short-term turbulence, Trump is expected to begin signing trade deals with several countries in the coming months—moves that could ease market uncertainty and avert a broader economic slowdown.
“India has several non-tariff barriers, such as quality control inspections,” Mobius noted. “Eliminating these barriers and establishing a free trade agreement with the U.S. would be the best path forward.”
India and the U.S. are currently working on the first phase of a Bilateral Trade Agreement (BTA), aiming to reduce tariffs before the fall of 2025. The terms of reference for the agreement have already been finalized, and both nations stand to gain from its timely completion.
Mobius emphasized that while a fully free trade environment would be ideal, many countries—particularly China—have been reluctant to follow World Trade Organization (WTO) rules and principles of reciprocity.
“The U.S. is seeking fair and reciprocal trade relationships to correct imbalances and promote domestic manufacturing globally,” he said.
Tensions between the U.S. and China have escalated in recent weeks. According to a White House fact sheet, Chinese imports now face tariffs as high as 245%, following Beijing’s move to block new deliveries of Boeing aircraft in response to earlier U.S. tariffs of 145% on Chinese goods.
Despite the rising tensions, the White House has indicated that Trump remains open to a trade deal with China—provided Beijing takes the first step. (Source: IANS)
