NEW DELHI, Mar 2: As India and the US prepare to initiate discussions for a prospective bilateral trade agreement, Commerce and Industry Minister Piyush Goyal is set to commence his visit to Washington on Monday, as confirmed by an official source.
During his visit, Goyal is expected to engage in discussions with US Trade Representative (USTR) Jamieson Greer and US Commerce Secretary Howard Lutnick, the official added.
During Prime Minister Narendra Modi’s recent visit to Washington, both nations affirmed their commitment to more than double bilateral trade to USD 500 billion by 2030 while aiming to negotiate the initial phase of a mutually advantageous, multi-sector Bilateral Trade Agreement (BTA) by the fall of 2025.
Last month, the minister highlighted that both India and the US are dedicated to enhancing bilateral trade to USD 500 billion and establishing a robust trade agreement in the upcoming 6-8 months.
This visit holds significant importance in light of US President Donald Trump’s announcement of plans to impose increased tariffs on India.
Tariffs are import duties enacted and collected by the government and are borne by companies importing foreign goods into the country.
Previously, Goyal mentioned that both nations could extend concessions and reduce duties, as their economies complement one another.
Typically, in a free trade agreement, two trading partners either eliminate or significantly lessen customs duties on the majority of goods traded between them, alongside relaxing regulations to encourage trade in services and enhance investments.
During Donald Trump’s first term, the two nations explored a mini-trade deal, which was later abandoned by the Joe Biden administration due to their disfavor towards such agreements.
In 2023, the bilateral trade in goods and services between the US and India reached USD 190.08 billion (USD 123.89 billion in goods and USD 66.19 billion in services trade). That year, India’s merchandise exports to the US totaled USD 83.77 billion, while imports hit USD 40.12 billion, resulting in a trade surplus of USD 43.65 billion favoring India.
India’s services exports to America amounted to USD 36.33 billion in 2023, with imports at USD 29.86 billion. The trade gap (the difference between imports and exports) was USD 6.47 billion, benefiting New Delhi.
From 2021 to 2024, the US was India’s largest trading partner, being among the few countries with which India enjoys a trade surplus.
In the 2023-24 period, the US continued to be India’s largest trading partner with USD 119.71 billion in bilateral trade (USD 77.51 billion in exports and USD 42.19 billion in imports — yielding a USD 35.31 billion trade surplus).
India attracted USD 67.8 billion in foreign direct investments from the US between April 2000 and September 2024. (PTI)
