KOCHI, Feb 21: The anticipated bilateral trade agreement between India and the US is set to be the “mother of all deals,” offering significant opportunities for collaboration between Indians and Americans, according to Union Minister Piyush Goyal on Friday.
While speaking at the Invest Kerala Global Summit (IKGS) in Kochi, the commerce and industry minister emphasized the central government’s solidarity and unwavering support for the event.
His remarks were made in light of the ongoing disagreements between the BJP-led central government and the Kerala government, which is under the administration of the Left Democratic Front (LDF), on various matters.
Mentioning India’s Comprehensive Economic Partnership Agreement (CEPA) with the UAE, Goyal remarked that it was the fastest free trade agreement ever negotiated worldwide.
“We look forward to initiating the CEPA process with Bahrain soon,” he announced in the presence of Bahrain and UAE ministers.
According to Goyal, India is already engaged in discussions with the European Union, the UK, and Oman for potential trade agreements.
“We will soon commence discussions with the Trump administration in the US regarding a robust economic partnership and a bilateral trade deal that will be the ultimate agreement, providing vast opportunities for collaboration and mutual strengths amidst global turbulence,” the minister stated.
Goyal highlighted the growth potential in Kerala and across the nation, urging investors not to miss out on the opportunities, particularly for the state, advising them against missing the boat.
“Those who miss the boat may find themselves stranded while others take advantage of the winds of growth, progress, and prosperity that India presents,” Goyal added.
Approximately 3,000 participants are anticipated at the two-day summit.
Goyal expressed his delight in visiting God’s Own Country, noting that each visit makes one reluctant to leave.
“I will return, so there’s no need for concern. The lotus may not have blossomed in Kerala yet, but it will very soon… On a lighter note, please don’t interpret this as a political statement,” Goyal, also a prominent BJP leader, commented.
During Prime Minister Narendra Modi’s recent visit to Washington, India and the US reaffirmed their commitment to enhance bilateral trade to over USD 500 billion by 2030 and to negotiate a multi-sector bilateral trade agreement (BTA) by the fall of 2025.
In a typical free trade agreement, involved parties often eliminate or substantially reduce customs duties on most traded goods and streamline regulations to facilitate service trade and investments.
During Donald Trump’s first term as US President, the two nations discussed a mini trade agreement, but this initiative was put on hold by the Biden administration, which opposed such deals.
In 2023, the US-India bilateral trade in goods and services reached USD 190.08 billion (with USD 123.89 billion from goods and USD 66.19 billion from services). In that year, India’s goods exports to the US totaled USD 83.77 billion, while imports were USD 40.12 billion, resulting in a trade surplus of USD 43.65 billion for India.
For services, India’s exports to the US were USD 36.33 billion in 2023, against imports of USD 29.86 billion, creating a trade surplus of USD 6.47 billion for New Delhi.
From 2021 to 2024, the US was India’s largest trading partner, and it is one of the few countries with which India holds a trade surplus.
In 2023-24, the US continued to be India’s largest trading partner, with bilateral goods trade amounting to USD 119.71 billion (USD 77.51 billion in exports and USD 42.19 billion in imports, yielding a trade surplus of USD 35.31 billion).
Since April 2000 through September 2024, India has attracted USD 67.8 billion in foreign direct investments from the US. (PTI)
