India, US likely to sign pact on critical minerals, sources say
Deal expected during Indian trade minister Goyal's visit to Washington
Pact aims to build supply chains, exchange know-how in critical minerals
India-U.S. bilateral trade in 2023-24 was about $120 bln, a record high
By Shivangi Acharya and Neha Arora
NEW DELHI, Sept 30 (Reuters) -India and the United States are likely to sign an initial pact for cooperation on critical minerals this week, two government sources said, as the two countries try to bolster trade ties despite diplomatic hiccups.
They are expected to sign an agreement to partner and cooperate in the area of critical minerals during Indian trade minister Piyush Goyal's visit to Washington, the sources said.
Goyal is scheduled to be in the U.S. this week to discuss ways to deepen overall bilateral trade ties, according to one of the sources, weeks before the White House's preparation for a leadership change following the presidential election later this year.
Goyal is expected to meet U.S. Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai this week, according to a statement from the Indian government.
Earlier this month, Indian Prime Minister Narendra Modi and President Joe Biden met in Delaware one-on-one as well as part of the Quad grouping which also includes the leaders of Australia and Japan.
The initial pact on critical minerals would help build supply chains, exchange technical know-how, and promote collaboration between Indian and American businesses in the sector, the first official said.
India's federal trade ministry did not immediately respond to a Reuters email for comment.
Reuters reported in June that state-run Coal India Ltd COAL.NS is exploring lithium blocks in Argentina along with a U.S. company to secure supplies of the battery material.
India has also proposed a separate critical minerals trade deal with the United States. This deal would prohibit the imposition of tariffs by both countries and will be similar to a pact with Japan that grants Japanese automakers wider access to U.S. electric vehicles tax credit.
India is a member of the U.S.-led Minerals Security Partnership, which aims to ensure adequate supplies of minerals needed to meet zero-carbon goals. Last year, Modi's government identified 30 minerals, including lithium and nickel, as critical for driving the adoption of clean energy.
India-U.S. bilateral trade in the 2023-24 fiscal year stood at nearly $120 billion, a record high. Under the Biden administration, the two nations mutually resolved all their disputes at the World Trade Organisation, a development India called "historic".
Reporting by Shivangi Acharya and Neha Arora; Editing by Mayank Bhardwaj and Muralikumar Anantharaman
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
