NEW DELHI, Feb 18: As India and the US gear up for discussions on a bilateral trade agreement, Commerce and Industry Minister Piyush Goyal stated on Tuesday that both nations can offer concessions and reduce tariffs, as their economies are well-aligned.
During Prime Minister Narendra Modi’s recent visit to Washington, India and the US pledged to more than double their bilateral trade to USD 500 billion by 2030. They also agreed to negotiate the initial segment of a mutually advantageous, multi-sector bilateral trade agreement (BTA) by autumn 2025.
“We complement each other and can provide mutual concessions, tariff reductions, and simplify the export and import processes between our two countries,” Goyal noted, adding, “We’ve begun brainstorming various ideas, consulting stakeholders across government and industry, and we’re preparing for discussions, which we hope will commence soon.”
The minister emphasized that the agreement would create opportunities for Indian industries to boost trade with the US to USD 500 billion by 2030.
“We view this chance as a means to enhance India’s competitiveness, produce high-quality products, and establish mutually beneficial trading conditions that can stimulate growth in both the US and India,” Goyal remarked at the NDTV Profit Conclave 2025.
Regarding reciprocal tariffs, he explained that India’s tariffs are designed to protect local industries from imports originating from non-market economies.
“Our aim is to address these trade issues to benefit both nations… The circumstances we face with the US differ from those with other countries,” he added.
Furthermore, he assured that there should be no cause for concern from the domestic industry in light of the trade talks with the US, asserting that India enters these discussions from a position of strength.
“I don’t perceive any reason for alarm… this presents a golden opportunity for business and will usher in numerous new business prospects. I believe those who are anxious now will regret it later,” he stated.
Earlier, at a CII event, Goyal reiterated India and the US’s commitment to boosting bilateral trade to USD 500 billion and negotiating a “robust” trade agreement in the next 6-8 months.
He mentioned that once his US counterpart is in place, the two nations would delineate the framework of the agreement.
“Within the next 6-8 months, by achieving a strong trade agreement, we are dedicated to elevating trade to USD 500 billion,” Goyal told reporters during the CII’s India-Qatar Business Forum meet.
When questioned about whether the agreement would include sections on goods, services, and investments, he responded, “My counterpart in the US hasn’t confirmed yet… After the confirmation, we will conduct discussions and determine the way forward.”
Typically, in a free trade agreement, two trading partners work to eliminate or significantly reduce customs duties on the majority of traded goods while also easing regulations to encourage trade in services and enhance investments.
During former President Donald Trump’s first term, the two nations contemplated a mini trade deal, which was later abandoned by the Biden administration in favor of different approaches.
In 2023, the US-India trade in goods and services reached USD 190.08 billion (comprising USD 123.89 billion in goods and USD 66.19 billion in services). India’s merchandise exports to the US were valued at USD 83.77 billion, while imports totaled USD 40.12 billion, resulting in a trade surplus of USD 43.65 billion for India.
India’s services exports to the US stood at USD 36.33 billion, compared to imports of USD 29.86 billion, leading to a trade surplus of USD 6.47 billion for India.
From 2021 to 2024, the US remained India’s largest trading partner, being one of the few countries with which India enjoys a trade surplus.
In 2023-24, the US continued to be India’s top trading partner, with a bilateral trade in goods totaling USD 119.71 billion (USD 77.51 billion in exports and USD 42.19 billion in imports, resulting in a trade surplus of USD 35.31 billion).
Since April 2000, India has attracted USD 67.8 billion in foreign direct investment from the US as of September 2024. (PTI)
