The Totalization Pact can bring remarkable results for Indian-origin students working in the US. Commerce and Industry Minister Piyush Goyal states that India will advance discussions on the pact with the US. However, things will take time. Nothing can change overnight as the matter of this pact has been going on for a long time. According to the totalization pact between the US and India, Indian students who work in America will not have to pay social security taxes to both nations for the same income. Thus, it will promote healthier and smoother labour mobility. Let us decode more about the pact below.
India Seeks Progress In Totalization Pact, Continues Talks With US
Commerce and Industry Minister Piyush Goyal recently attended the 6th India-US Commercial Dialogue with US Secretary of Commerce, Gina Raimondo. He was on a four-day visit to the US on the invitation from 30 September to 3 October 2024. During the discussions, the matter of the totalization pact was also raised. Commerce and Industry Minister Piyush Goyal mentions that India will continue the discussions with the US regarding the totalization pact. Under this pact, Indian students will benefit from social security schemes working in America.
According to the host, the dimensions should have been resolved earlier. However, it stretched longer. He states, “Now the dimension of the money collected by the US treasury is so large that for any government, this will be a major decision.” He emphasises the fact that the matter will take longer to reach a destination. It will not be solved overnight. At the moment, the students of Indian origin contribute more than $1 Billion every year.
Discussions on the other matter also lead to some allegations. The US asks Goyal about the high customs duties that India puts on several goods. However, he replies that the US also keeps a 163% duty on peanut butter for its farmers. India also has high duties on some goods. While others have no duty according to the interest of India’s manufacturers. Other allegations include India-Pakistan trade relations. Piyush replies that Pakistan stopped the trade itself. Thus, India has no role in this.
Apart from this, Piyush also focuses on international companies setting its base in India. He expects that the exports will increase in the coming financial year. Apple alone has exports of more than $5 Billion in the first five months of the current financial year. It assumes to expand further in the coming year.