India Considers Removing Import Taxes on U.S. Ethane and LPG to Strengthen Trade Ties:

The US and India are engaging each other through trade deals which include the US supplying Ethane and LPG off-shore to India for free, India intends to brace geopolitical superpower alliances. LPG and Ethane imports are currently charged with taxation that thwarts global trade rate on oil bust economies.

As part of the oil and gas industry, India still sets out a 2.5% taxa on LPG and Ethane imports. The Ethane is largely used in petrochemicals while the LPG is designed for Indian house-cooking by mutitasking on several devices.

As a result of this decision India’s dependence on Ethane imports will increase. Apart from China, India has set out to become one of the leading Ethane and LPG consumers. Set out to vex Saudi oil barons, India has chosen Eastern region countries as the primary suppliers for the 18.5 million metric tons worth 10.4 billion dollars.

Economic Strategy and Objectives of a Trade Deal

The United States and India have come up with a trade deal to achieve a target of $500 billion of bilaterial trade by the year 2030. As a component of this plan, trade deficit concerning U.S. energy imports must be reduced from $45.7 billion to around $30 billion. A benchmark will be determined for additional purchases of U.S. energy products.

Economic Infrastructure and Logistical Dimensions

There are certain infrastructural limits in place that result in difficulties importing ethane, yet there are possibilities to increase LPG imports given the existing infrastructure.

There are also strong Indo-US energy trade relations that are developing further. In India, the decision to cut the import duty is at the hands of the Commerce and Finance Ministers which tenders the decision as a part of business policy logic evaluation.