Digital Trade: A Chapter Awaiting in US-India Bilateral Agreement

India and the US have delayed negotiations on digital trade in their interim trade pact, choosing to address it in the forthcoming bilateral trade agreement. Both nations aim to establish digital trade rules that are beneficial and robust, although discussions are yet to commence.

In a recent development, discussions on digital trade between India and the United States have been put on hold in the interim trade agreement. Instead, this crucial topic will be tackled as part of the upcoming bilateral trade agreement (BTA), according to official sources.

A joint statement released on February 7 signaled the finalization of the first-phase framework of the BTA. Both nations are committed to addressing barriers and setting ambitious, mutually beneficial rules for digital trade, yet negotiations on this front have not yet begun.

Last year, India made a significant move by withdrawing the 2 per cent digital tax on international e-commerce transactions. This shift is seen as an opportunity by US firms eager to explore India's rapidly expanding digital market.

(With inputs from agencies.)