India and the US aim to double trade to USD 500 billion by 2030 and plan to establish a Bilateral Trade Agreement by 2025. Recent discussions emphasized tariff reductions and the inclusion of agriculture in negotiations. In 2023, the US-India trade reached USD 190.08 billion, with a favorable trade balance for India.
The recent discussions between India and the United States have solidified their pledge to elevate bilateral trade to USD 500 billion by 2030 and to initiate a comprehensive Bilateral Trade Agreement (BTA) by fall 2025. This significant development follows Prime Minister Narendra Modi’s visit to Washington.
In a statement on Friday, US President Donald Trump noted that India has consented to significantly reduce its tariffs, asserting that the current tariffs impede American sales in the Indian market. Commerce Secretary Lutnick advocated for a substantial trade agreement rather than a piecemeal approach.
Emphasizing the importance of an open agriculture market, Trump indicated that this sector must be included in negotiations with India, the United States’ largest trade partner. In 2023, the US-India trade in goods and services reached USD 190.08 billion, with a notable trade surplus favoring India.
India’s merchandise exports to the US amounted to USD 83.77 billion in 2023, while imports reached USD 40.12 billion, resulting in a favorable trade gap of USD 43.65 billion for India. Additionally, services exports were valued at USD 36.33 billion against imports of USD 29.86 billion, highlighting a trade surplus of USD 6.47 billion.
From 2021 to 2024, the US maintained its position as India’s largest trading partner, contributing to a significant bilateral trade growth recorded at USD 119.71 billion, demonstrating India’s export strength with a surplus of USD 35.31 billion. Notably, India attracted USD 67.8 billion in foreign direct investment from the US between April 2000 and September 2024.
The ongoing trade discussions between India and the United States signal a promising future for bilateral economic relations, highlighted by a commitment to expand trade significantly. Key sectors, particularly agriculture, are under scrutiny as both nations strive to negotiate a beneficial agreement. The substantial trade surpluses and foreign direct investments underscore the vitality of this partnership, projecting a robust economic trajectory moving forward.
Original Source: m.economictimes.com
