India and the US are working on removing trade barriers and enhancing market access through a Bilateral Trade Agreement aimed for completion by fall 2025. The discussions focus on tariff reductions, particularly on automobiles, with the goal of achieving $500 billion in bilateral trade by 2030. The dialogue reflects both nations’ commitment to a balanced trade relationship amidst disparities in tariff rates.
The governments of India and the United States are actively working towards removing trade barriers to enhance market access and improve supply chain integration. Jitin Prasada, the Minister of State for Commerce, announced these intentions following a recent week-long delegation visit to the US, during which they discussed a Bilateral Trade Agreement (BTA) projected for completion by fall 2025.
Prasada highlighted that the US has not yet imposed reciprocal tariffs on Indian exports, alleviating some concerns amid ongoing negotiations. The Indian government is reviewing high tariffs, particularly on automobiles, which could lead to mutual benefits as highlighted by officials speaking on condition of anonymity. Sectors such as engineering, gems and jewelry, and textiles are expected to gain from these discussions, as illustrated by significant export figures from recent financial years.
A major outcome of discussions between Prime Minister Narendra Modi and former President Donald Trump was the decision to negotiate a comprehensive BTA aimed at doubling bilateral trade to $500 billion by 2030, termed “Mission 500.” A memorandum issued in February 2025 mandates investigations into non-reciprocal trade arrangements, providing a framework for the US to propose remedies for unfair trading practices.
Additionally, a fact sheet from the Trump administration pointed to stark differences in tariff rates between the two nations, particularly highlighting that India’s tariffs on agricultural goods and motorcycles significantly exceed those imposed by the US. Indian officials assert their commitment to forming a balanced trade relationship and resolving tariff and non-tariff issues together.
In 2023, trade in goods and services between India and the US exceeded $190 billion, with India exporting goods valued at approximately $83.77 billion while importing $40.12 billion, resulting in a notable trade deficit for the US. Such figures underscore the importance of this ongoing trade dialogue.
In summary, India and the United States are advancing towards a mutually beneficial trade framework, aiming to eliminate trade barriers and achieve substantial market access. Both nations are committed to negotiating a Bilateral Trade Agreement by 2025, which is expected to enhance economic relations and significantly boost trade volumes. Ongoing dialogue on tariffs and fair trading practices reflects their dedication to fostering a balanced trade relationship.
Original Source: www.hindustantimes.com
