India and the United States are poised to sign an initial agreement this week focused on cooperation in critical minerals, two Indian government sources said. This move comes as both nations seek to enhance their trade relationships despite some diplomatic challenges.
The agreement is expected to be finalized during Indian Trade Minister Piyush Goyal's visit to Washington, where he will engage in discussions aimed at deepening bilateral trade ties. Goyal's visit occurs just weeks before the upcoming presidential election in the U.S.
During his trip, Goyal plans to meet with U.S. Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai, as confirmed by the Indian government.
Earlier this month, Indian Prime Minister Narendra Modi and U.S. President Joe Biden held discussions in Delaware, both in a one-on-one meeting and as part of the Quad summit, which also includes leaders from Australia and Japan.
The anticipated pact on critical minerals aims to establish robust supply chains, facilitate technical knowledge exchange, and foster collaboration between businesses in both countries within this vital sector.
On September 29, India's trade ministry indicated that the two countries are negotiating a Memorandum of Understanding (MoU) to bolster cooperation, enhance and diversify supply chains for essential minerals, and capitalize on each nation's strengths.
In June, reports indicated that state-run Coal India Ltd was exploring lithium mining opportunities in Argentina in partnership with a U.S. firm to secure supplies of this crucial battery material.
India has also proposed a separate trade deal with the U.S. concerning critical minerals, which would eliminate tariffs imposed by both nations. This agreement would mirror a similar arrangement with Japan, allowing Japanese automakers broader access to U.S. electric vehicle tax credits.
As a participant in the U.S.-led Minerals Security Partnership, India aims to ensure a steady supply of minerals essential for achieving zero-carbon objectives. Last year, the Indian government identified 30 critical minerals, including lithium and nickel, as vital for advancing clean energy initiatives.
In the 2023-24 fiscal year, bilateral trade between India and the U.S. reached nearly $120 billion, marking a record high. Under President Biden’s administration, both countries successfully resolved all disputes at the World Trade Organization, a development India hailed as historic.
MORE TO READ....
Piyush Goyal Reviews India-ASEAN Trade Pact Progress in Laos
China Calls on U.S. to End 'Unreasonable Suppression' of Its Companies in Auto Row
Biden to ban Chinese tech in cars, China Calls It “Discriminatory”