Commerce and Industry Minister Piyush Goyal is scheduled to visit Washington, D.C. from March 3 to March 7, aiming to advance discussions on a crucial bilateral trade agreement (BTA) between India and the United States.
This visit is part of India's continued efforts to deepen trade relations with the US following Prime Minister Narendra Modi's recent trip to Washington, where both nations reaffirmed their commitment to significantly enhance two-way commerce. They aim to more than double bilateral trade to USD 500 billion by 2030, with plans to finalize the initial phase of a comprehensive, multi-sector trade agreement by the fall of 2025.
Key Meetings Scheduled in Washington
Minister Goyal is expected to hold important discussions with US Trade Representative (USTR) Jamieson Greer and US Commerce Secretary Howard Lutnick. These high-level talks are anticipated to focus on critical aspects of trade, tariff reductions, and increased bilateral investments.The Commerce Ministry has already initiated engagements with various government departments, gathering comprehensive inputs on trade-related matters to ensure India's strategic interests are protected and promoted in the proposed trade deal.
Significance of the Proposed Bilateral Trade Agreement
The potential agreement comes at a crucial juncture, as former US President Donald Trump's threats of increased tariffs on Indian imports had previously raised concerns. Tariffs, which are government-imposed import duties paid by importing businesses, play a significant role in shaping trade flows.Minister Goyal previously indicated that both countries are in a favorable position to negotiate mutual concessions and duty reductions, citing complementary economic strengths. Typically, a free trade agreement (FTA) involves either eliminating or significantly lowering customs duties on a broad range of traded goods, coupled with easing restrictions to promote service trade and investments.
Background on India-US Trade Relations
The groundwork for such an agreement has historical context. During the Trump administration's initial term, India and the US had engaged in negotiations for a limited "mini-trade deal," which was later discontinued by President Joe Biden’s administration, citing preferences for more comprehensive agreements.In 2023, bilateral trade between India and the US in goods and services totaled USD 190.08 billion, with India enjoying a surplus of USD 43.65 billion in merchandise trade and USD 6.47 billion in services trade. Specifically, India's merchandise exports to the US were valued at USD 83.77 billion, against imports worth USD 40.12 billion.
During 2023-24, the United States retained its position as India's largest trading partner, recording a total trade volume of USD 119.71 billion in goods. India's exports during this period amounted to USD 77.51 billion, while imports from the US were USD 42.19 billion, generating a surplus of USD 35.31 billion for India.
Additionally, from April 2000 to September 2024, India attracted substantial foreign direct investment (FDI) inflows amounting to USD 67.8 billion from the US, reinforcing the strategic economic partnership between the two nations.
Minister Goyal's upcoming visit marks another significant step in strengthening economic collaboration, setting the stage for future growth and prosperity through mutually beneficial trade ties.
