New Delhi, Feb 18: The governments of India and the United States are dedicated to enhancing bilateral trade to USD 500 billion and are in the process of negotiating a robust trade agreement in the upcoming 6-8 months, stated Commerce and Industry Minister Piyush Goyal on Tuesday.
During Prime Minister Narendra Modi’s recent trip to Washington, both nations declared their intention to more than double their two-way trade to USD 500 billion by 2030 and to negotiate the initial phase of a mutually advantageous, multi-sector bilateral trade agreement (BTA) by the fall of 2025.
Goyal noted that discussions about the details of the agreement would begin once his US counterpart is appointed.
“In the next 6-8 months, we are committed to establishing a strong trade agreement that will facilitate the increase of trade to USD 500 billion,” Goyal informed reporters during the CII’s India-Qatar Business Forum.
He highlighted the enthusiasm from businesses in both countries regarding the agreement.
When asked if the agreement would encompass chapters on goods, services, and investments, he replied, “My counterpart in the US has not yet confirmed… After the confirmation, discussions will take place, and we can then determine the way forward.”
Generally, in a free trade agreement, two trading partners either abolish or significantly reduce tariffs on the majority of goods traded between them. Additionally, they often simplify regulations to encourage trade in services and attract investments.
During Donald Trump’s first term as US President, discussions were held regarding a mini-trade deal, but the Biden administration decided to postpone it, as they were not supportive of 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). For that year, India’s exports of merchandise 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 export of services to America was USD 36.33 billion in 2023, with imports amounting to USD 29.86 billion, yielding a trade surplus of USD 6.47 billion in favor of India.
From 2021 to 2024, the US has been India’s largest trading partner, being one of the few countries with which India maintains a trade surplus.
In the 2023-24 period, the US continued to be India’s largest trading partner, with bilateral trade in goods reaching 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 to September 2024, India has attracted USD 67.8 billion in foreign direct investment from the US. (Agencies)
