"Trade deficit cannot be a determinant of this relationship”, said Pradeep S. Mehta, Secretary General of CUTS International.“Too much of emphasis on bilateral trade deficit can spoil the game. “In 2016, in terms of goods trade, the US trade deficit with India was US$22bn – a mere 2.7 per cent of total US trade deficit of US$798bn with the world that year. However, trade deficit has to be seen in a scientific manner. A manageable and sustainable current account deficit helps countries to attract foreign capital. Mehta is also a member of the Government of India’s Board of Trade.CUTS argues that the underlying logic to this bilateral trade relationship goes beyond what is reflected in gross trade figures.

Source: Economic Times January 09, 2019 06:45 UTC