India-U.S. Bilateral Trade Agreement in the Making

India and the U.S. are pursuing a bilateral trade agreement to enhance economic ties, address trade barriers, and expand goods and services markets. The aim is to double bilateral trade to $500 billion by 2030.

India aims to reduce tariff and non-tariff barriers with the United States while enhancing trade in goods and services through a multi-sector Bilateral Trade Agreement (BTA) currently under development. The Ministry of External Affairs (MEA) confirmed this initiative on Friday, emphasizing the strategic importance of strengthening economic ties between the two nations.

The announcement follows Prime Minister Narendra Modi’s visit to the United States in February, during which both leaders expressed their commitment to negotiating a comprehensive and mutually beneficial BTA. MEA spokesperson Randhir Jaiswal reiterated this commitment, stating that both countries had agreed to engage in discussions to formalize the agreement.

The BTA initiative aims to enhance and expand bilateral trade between India and the United States in the goods and services sectors. This effort aims to facilitate greater market access while addressing tariff and non-tariff barriers that hinder trade growth.

Additionally, the initiative seeks to strengthen supply chain integration between the two nations, fostering deeper economic collaboration. By advancing these priorities, BTA creates a more seamless and mutually beneficial trade relationship between India and the United States.

Jaiswal highlighted that Union Commerce Minister Piyush Goyal’s recent visit to the United States, during which he engaged with his counterparts, is part of ongoing diplomatic efforts to advance a bilateral trade agreement. This visit underscores the commitment of both nations to strengthening economic ties and fostering cooperation.

He further stated that the two governments actively engage in discussions to advance a multi-sector Bilateral Trade Agreement. These negotiations reflect a shared interest in enhancing trade relations and addressing key economic priorities between the two countries.

Jaiswal’s remarks were made in response to the recent announcement by U.S. President Donald Trump regarding the implementation of reciprocal tariffs on India. These tariffs are scheduled to take effect on April 2, 2025, signaling a shift in trade policies that may influence the broader economic landscape between the two nations.

In alignment with the "America First" policy, former President Donald Trump announced this week that reciprocal tariffs would be imposed on several trading partners and nations that levy higher duties on U.S. imports. This decision underscores the administration's commitment to addressing trade imbalances and ensuring fair competition for American businesses.

Prime Minister Narendra Modi visited the United States on February 12–13, marking his first official trip since Donald Trump returned to the Oval Office last month. The visit aimed to strengthen diplomatic and economic ties between the two nations, reflecting their ongoing strategic partnership.

During the visit, Prime Minister Modi stated that the United States and India have set an ambitious target to double their bilateral trade to $500 billion by 2030. This objective highlights both nations' commitment to expanding economic cooperation and fostering mutual growth in key industries.