India and the United States are on the brink of a groundbreaking trade deal that could redefine their economic partnership. Commerce and Industry Minister Piyush Goyal has hinted at an upcoming agreement aimed at boosting bilateral trade to $500 billion, with finalisation expected within the next six to eight months, reported PTI.

       During Prime Minister Narendra Modi’s recent visit to Washington DC, both countries announced an ambitious plan to more than double their trade by 2030. As part of this commitment, India and the US have agreed to initiate negotiations on a multi-sector Bilateral Trade Agreement (BTA) by the fall of 2025, marking a significant step toward deeper economic cooperation.

       Both nations eager for trade talks

       Goyal emphasised that discussions on the agreement will commence once his US counterpart assumes office, adding that businesses in both countries are enthusiastic about the upcoming pact.

       When asked about the potential scope of the trade agreement, including goods, services, and investment chapters, Goyal said, “My counterpart in the US has not yet confirmed... After receiving confirmation, we will engage in discussions to determine the path ahead.”

       What trade agreement could mean

       Trade agreements typically focus on reducing or eliminating customs duties on goods, simplifying regulations to facilitate services trade, and boosting investment flows. This move is expected to create new opportunities for industries in both countries while ensuring a smoother exchange of goods and services.

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       Previously, during Donald Trump’s administration, India and the US had explored a mini-trade deal. However, the Biden administration opted against such agreements, prioritising broader trade policies.

       India-US trade relations

       Bilateral trade between the US and India reached $190.08 billion in 2023, comprising $123.89 billion in goods and $66.19 billion in services. India enjoyed a trade surplus, with merchandise exports to the US totaling $83.77 billion, while imports stood at $40.12 billion. In services, India exported $36.33 billion to the US and imported $29.86 billion, resulting in a surplus of $6.47 billion.

       Between 2021 and 2024, the US remained India’s largest trading partner. The trend continued into the 2023-24 period, with bilateral trade in goods reaching $119.71 billion, comprising $77.51 billion in exports and $42.19 billion in imports, securing a trade surplus of $35.31 billion for India.

       Furthermore, the US has been a significant investor in India, contributing $67.8 billion in foreign direct investments (FDI) between April 2000 and September 2024. (With agency inputs)

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