India’s Commerce Minister, Piyush Goyal, expressed optimism on Saturday about strengthening trade ties with the United States through a proposed critical mineral partnership. Speaking at a press briefing in New Delhi, Goyal highlighted the potential for this collaboration to serve as a stepping stone towards a broader Free Trade Agreement (FTA) between the two nations.
“I’ve suggested that our critical minerals MoU could evolve into a strategic partnership and eventually lead to FTA discussions, benefiting both countries,” Goyal stated.
In early October, India and the U.S. took an important step by signing an initial agreement to enhance cooperation on key minerals like lithium and cobalt, essential for electric vehicles (EV) and clean energy initiatives. This MoU strengthens supply chains for these vital minerals, offering significant opportunities for growth and innovation in both countries’ green economies.
While the agreement sets a solid foundation, the vision is to progress towards a full-fledged critical minerals trade deal. Such a deal could allow India to leverage benefits from the U.S. electric vehicle tax credit, valued at $7,500 per vehicle, introduced under the Inflation Reduction Act.
This move not only aligns with global sustainability goals but also reflects the U.S. administration’s broader strategy of building resilient, trusted supply chains with key allies.
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