India and the United States are set to embark on an ambitious path to strengthen their economic ties, with a commitment to elevate bilateral trade to $500 billion by 2030. This goal was outlined by India’s Commerce and Industry Minister Piyush Goyal during a meeting on Tuesday, where he highlighted that both nations aim to finalize a robust trade agreement in the next 6-8 months.
The announcement comes on the heels of Prime Minister Narendra Modi’s recent visit to Washington, during which the two countries agreed to more than double their trade. By Fall 2025, India and the US plan to negotiate the first phase of a comprehensive, multi-sectoral Bilateral Trade Agreement (BTA). This pact is expected to cover goods, services, and investment opportunities, with both sides eager to finalize its details once the new US leadership officially takes charge.
Goyal emphasized that the business communities in both nations are excited about the prospects of the agreement, which could eliminate trade barriers, reduce customs duties, and enhance the flow of services and investments.
In 2023, trade between the two countries reached $190 billion, with India enjoying a surplus in goods and services. India exported $83.77 billion in merchandise and $36.33 billion in services to the US, while imports from the US stood at $40.12 billion and $29.86 billion, respectively. The US remains India’s largest trading partner, with a significant trade surplus in India’s favor.
The proposed trade agreement marks a shift from past discussions. In the first term of US President Donald Trump, a mini-trade deal was explored, but the Biden administration refrained from pursuing such pacts. However, the current momentum indicates both countries are now poised to solidify a more expansive and enduring trade relationship.
The US also remains a key investor in India, with the country receiving $67.8 billion in foreign direct investment from America between 2000 and 2024. This strengthened trade and investment partnership will likely play a pivotal role in shaping the economic future of both nations.
