India is eyeing a critical minerals partnership agreement with the US which could lead to expansion of trade ties between the two countries, Commerce & Industry Minister Piyush Goyal has said.
“India wants the critical minerals MoU with the US to take the form of a partnership agreement which could go towards FTA (status),” Goyal said in an interaction with the media.
He added that the US, too, was keen to expand trade partnership with India and things could move forward after the elections. “What shape and form it (the partnership) can take has to be decided after the (US) elections,” Goyal said.
The Minister recently was in Washington where the two countries signed a MoU on critical minerals to help establish a secure supply chain of minerals between the countries and lead to cooperation in extraction and product development.
India is hoping to sign a critical minerals agreement with the US on the lines of one signed between US and Japan in 2023 which could make it eligible for subsidies under the Inflation Reduction Act (IRA).
Under the agreement, Japan was designated by the US Department of Treasury as an FTA for the purposes of tax credit under the IRA
“India has submitted some documents to the US for consideration for the purpose of a possible critical minerals agreement. However, the matter can be considered only after the US elections as the US is right now not keen on extending FTA status to any country. Hopefully things will move in the desired direction after the elections,” an official tracking the matter said.
The Inflation Reduction Act provides for tax credit of up to $7,500 on EVs, which meet domestic content requirements
The US Department of State recently partnered with the India Semiconductor Mission, Ministry of Electronics and IT, to explore opportunities to grow and diversify the global semiconductor ecosystem under the International Technology Security and Innovation (ITSI) Fund, created by the CHIPS Act of 2022 (CHIPS Act).