India and US Target USD 500 Billion Trade Expansion

New Delhi, Feb 18 (KNN) In a significant development aimed at strengthening economic ties, Union Minister of Commerce and Industry Piyush Goyal announced that India and the United States are committed to increasing bilateral trade to USD 500 billion.

Additionally, both nations plan to finalise a "strong" trade agreement within the next 6-8 months.

The announcement follows Indian Prime Minister Narendra Modi’s recent visit to Washington, where both countries reaffirmed their objective to more than double two-way commerce by 2030.

The first phase of a multi-sector bilateral trade agreement (BTA) is expected to be concluded by fall 2025.

Speaking at the CII’s India-Qatar Business Forum meet, Goyal emphasised the enthusiasm among businesses in both nations. "In the next 6-8 months, by establishing a strong trade agreement, we are committed to increasing trade to USD 500 billion," he stated.

However, the final contours of the agreement will be determined once the U.S. Commerce Secretary takes office. Responding to queries on whether the pact would cover goods, services, and investments, Goyal noted, "My counterpart has not yet confirmed in the U.S. Once that happens, we will discuss and decide the way forward."

Historically, India and the U.S. have deliberated on trade agreements, including a proposed mini-trade deal during former U.S. President Donald Trump’s tenure. However, the initiative was put on hold under the Joe Biden administration.

In 2023, bilateral trade between the two nations stood at USD 190.08 billion, with USD 123.89 billion in goods and USD 66.19 billion in services.

India's merchandise exports to the U.S. were valued at USD 83.77 billion, while imports totalled USD 40.12 billion, resulting in a trade surplus of USD 43.65 billion in favour of India.

The United States has remained India’s largest trading partner from 2021-24, with a total trade value of USD 119.71 billion in 2023-24.

America is also a significant investor in India, with USD 67.8 billion in foreign direct investments recorded between April 2000 and September 2024.

As the two nations gear up for negotiations, industry experts anticipate a robust trade deal that could reshape bilateral commerce, fostering mutual economic growth.

(KNN Bureau)