India and the U.S. announced a plan to double bilateral trade to USD 500 billion by 2030, with negotiations on a multi-sector Bilateral Trade Agreement by 2025. President Trump confirmed India’s agreement to reduce tariffs, while Commerce Secretary Lutnick suggested a comprehensive trade agreement. In 2023, trade between the two nations reached USD 190.08 billion, with India’s significant trade surplus.
During the recent visit of Prime Minister Narendra Modi to Washington, India and the United States made a significant announcement regarding their economic relationship. Both nations committed to increasing bilateral trade to USD 500 billion by 2030 and to negotiate a multi-sector Bilateral Trade Agreement (BTA) by the fall of 2025. This agreement is intended to provide mutual benefits while enhancing trade ties.
President Donald Trump acknowledged India’s commitment to reducing tariffs on American goods, reflecting the ongoing discussions concerning trade barriers. He emphasized that India has historically imposed high tariffs, making it challenging for U.S. products to enter the Indian market. Furthermore, Commerce Secretary Lutnick advocated for a comprehensive trade agreement rather than a fragmented, product-by-product approach.
The current landscape of U.S.-Indian trade is noteworthy, with bilateral trade in goods and services reaching USD 190.08 billion in 2023. This figure includes USD 123.89 billion in goods and USD 66.19 billion in services. India exported goods worth USD 83.77 billion to the U.S. while importing USD 40.12 billion, establishing a trade surplus for India of USD 43.65 billion.
In terms of services, India’s exports to the U.S. were USD 36.33 billion, against imports amounting to USD 29.86 billion, resulting in a trade surplus of USD 6.47 billion in this sector as well. Throughout 2021-24, the U.S. emerged as India’s largest trading partner, and India maintained a trade surplus with this key ally.
In fiscal year 2023-24, the bilateral trade in goods between India and the U.S. reached USD 119.71 billion, comprising USD 77.51 billion in exports and USD 42.19 billion in imports. India enjoyed a trade surplus of USD 35.31 billion during this period. Since April 2000, India has attracted USD 67.8 billion in foreign direct investments from the United States, demonstrating the strength of their economic relationship.
The recent discussions between India and the United States illustrate a commitment to significantly enhance bilateral trade, aiming for USD 500 billion by 2030. Both nations are working towards negotiating a comprehensive Bilateral Trade Agreement by 2025. The strong trade relations are evidenced by substantial trade surpluses on India’s part and the considerable foreign direct investments from the U.S. into India, highlighting the mutual benefits that such cooperation can yield.
Original Source: m.economictimes.com
