The two sides inked an MoU on critical minerals supply chains in October, with the aim of leveraging their complementary strengths to ensure greater resilience in the critical minerals sector.India's MoU with the US on critical minerals will be "a step forward" for their engagement as the scaling up of this will lead to more binding commitments fructifying to benefits under the US' Inflation Reduction Act (IRA), the government said Thursday.
New Delhi has proposed a critical minerals partnership agreement (CMPA) with the US in sectors like electric vehicles. "India reiterated its keenness to get into the CMPA with USA, leading to a pathway under the IR Act," the commerce department said in its year-end review for 2024.
The two sides inked an MoU on critical minerals supply chains in October, with the aim of leveraging their complementary strengths to ensure greater resilience in the critical minerals sector.
New Delhi expects the conversion of the MoU into a partnership agreement would give it the status of a free trade agreement (FTA) that would enable it to benefit from the EV tax credit that the US gives under its IRA.
The tax credit depends on critical minerals' origins, requiring that a percentage of materials in EV batteries come from the US or countries with which the US has an FTA.
The access to the US EV tax credit of up to USD 7,500 per vehicle would attract substantial foreign investment and make large-scale manufacturing of components in India commercially viable.
As per the review, China has granted market access for Indian export of key fish species including Pampus chinensis (Chinese pomfret), Pampus argenteus (silver pomfret) and Scylla serrata (mud crab).
Besides, Russia has allowed the export of dairy products from the already listed two establishments and already listed five export establishments from India and one more establishment from India for export of egg products.
Trade pacts The department also said that India is engaged in FTA negotiations with the UK, EU, Oman, Peru and Sri Lanka besides a Comprehensive Economic Cooperation Agreement. The India-Sri Lanka Economic and Technology Cooperation Agreement negotiations are ongoing with the 14th round of negotiations concluded in July 2024.
"Except the track on goods dealing with specific lines pertaining to garments, negotiations on almost all chapters including services and rules of origin have been concluded," it said in a statement.
