India and the United States aim to double bilateral trade to $500 billion by 2030, discussing a multi-sector Bilateral Trade Agreement by 2025. President Trump praised India’s commitment to reducing tariffs, which have previously impeded U.S. product sales. In 2023, bilateral trade reached $190.08 billion, with India enjoying a significant trade surplus with the U.S.
During the recent visit of Prime Minister Narendra Modi to Washington, India and the United States demonstrated their commitment to significantly enhance bilateral trade to $500 billion by the year 2030. The parties are also aiming to negotiate a Bilateral Trade Agreement (BTA) by autumn of 2025, which would encompass multiple sectors.
U.S. President Donald Trump remarked that India agreed to reduce its tariffs significantly, asserting that India imposes high tariffs that hinder American products from entering its market. Additionally, Commerce Secretary Lutnick advocated for establishing a comprehensive trade agreement with India rather than pursuing a fragmented, product-specific approach.
India’s agriculture market is a key focus. Trump stressed that agriculture cannot be excluded from negotiations due to its importance as India engages with its principal trading partner.
For the year 2023, the bilateral trade in goods and services between the two nations reached $190.08 billion, comprising $123.89 billion in goods and $66.19 billion in services. India exported $83.77 billion worth of goods to the U.S., while imports totaled $40.12 billion, resulting in a trade surplus of $43.65 billion in India’s favor.
In the services sector, India’s exports amounted to $36.33 billion against imports of $29.86 billion, yielding a trade surplus of $6.47 billion for India. Throughout 2023-2024, the United States maintained its position as India’s largest trading partner, marking a significant trade surplus for India.
From April 2000 to September 2024, India received $67.8 billion in foreign direct investments from the United States, further solidifying the economic ties between the two nations. The ongoing discussions surrounding trade agreements signify not just economic significance, but also a strategic alliance between India and the United States.
In conclusion, the recent discussions in Washington reflect a strong commitment between India and the United States to enhance their economic relationship, with a target to elevate bilateral trade to $500 billion by 2030. The emphasis on a comprehensive trade agreement, alongside addressing tariffs and market access, signifies a collaborative approach towards mutual economic growth and shared interests.
Original Source: m.economictimes.com
