India-US Aim to Boost Bilateral Trade to $500 Billion by 2030: Piyush Goyal

By siliconindia  |  Tuesday, 18 February 2025, 11:41:09 AM IST

India-US Aim to Boost Bilateral Trade to $500 Billion by 2030: Piyush Goyal
India and US have pledged to take their two-way trade to $500 billion in 2030, India's Commerce and Industry Minister Piyush Goyal said. India and the United States also hope to enter into a 'strong' free trade agreement  within 6-8 months' time.
This announcement follows Prime Minister Narendra Modi’s recent visit to Washington, during which the leaders of both nations pledged to more than double the current trade figures. The goal is to not only elevate trade levels but also to establish a mutually beneficial, multi-sector bilateral trade agreement (BTA) by the fall of 2025.
Minister Goyal was positive about the deal that is set to happen, saying that once his US counterpart assumes office, negotiations on the finer details of the agreement would begin. "In the next 6-8 months, by building a robust trade agreement, we are determined to enhance trade to $500 billion", Goyal informed journalists at the sidelines of the CII India-Qatar Business Forum. He further added that companies in both nations are upbeat about the positives of this agreement.
Asked whether the agreement might have a shape, Goyal indicated that it might cover areas like goods, services, and investments. However, he added that his counterpart in the US had not confirmed these details. A standard free trade agreement (FTA) between two countries normally has provisions for the removal or substantial reduction of tariffs on a wide variety of goods, together with steps to liberalize regulation and promote enhanced trade in services and investments.
Under the Trump presidency, the US and India had been negotiating a mini-trade deal, but it was put on the backburner by the Biden administration. Still, the US and India have been intensifying their economic relations, and bilateral trade in goods and services has reached $190.08 billion in 2023. India's merchandise exports to the US were $83.77 billion, while imports were $40.12 billion, creating a trade surplus for India of $43.65 billion.
The trade in services also recorded positive growth, with India exporting $36.33 billion worth of services to the US and importing $29.86 billion from the US, resulting in a trade deficit of $6.47 billion in India's favor. Interestingly, the US has remained India's largest trading partner throughout the 2021-24 period, and India has a trade surplus with the US.
Moreover, India has attracted $67.8 billion of foreign direct investment (FDI) from the US from April 2000 to September 2024, further reinforcing the economic partnership between the two countries.

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