India, US set roadmap for trade pact talks in March
India’s exports to the US grew by 8.6% to $68.47 billion in April 2024- January 2025 against $63 billion in the same period previous year
NEW DELHI: India and the US are expected to start formal talks of a trade deal next month, following up on issues discussed at a meeting between Prime Minister Narendra Modi and US President Donald Trump last week, officials familiar with the matter said, asking not to be named.
The roadmap for the formal negotiations has already been given by the two leaders on February 13 with the joint statement issued by the two sides mentioning a target of $500 billion for bilateral trade by 2030, the officials added.
Negotiations will start after new US commerce secretary and the United State Trade Representative (USTR) assume office, they said.
The officials said that the aim will be to conclude a multi-sector Bilateral Trade Agreement (BTA) in eight-nine months.
“The talks will aim to conclude a fair, equitable, and mutually beneficial, deal,” one of the officials said, adding that there is no talk of a “mini trade deal or a FTA”.
Areas under consideration for the BTA include enhanced labour-intensive manufacturing and trade in agriculture, a second official said.
“The US exports a lot of agriculture goods to India, about $4 billion-plus every year,” and the two countries could mutually benefit from enhanced trading in agricultural produce, this person added.
A third official said it is only natural that the trade deficit between the two countries -- $45.7 billion in 2024 in India’s favour, and an issue was raised by Trump. “Demand for American products in India will further grow as we are one of the fastest growing major economies of the world and our target is to become world’s third largest economy by 2029 after the US and China. Huge demand will be created with the expansion of our economy and as a trade partner America will benefit. The trade deficit between the two countries will automatically narrow.”
According to the latest government data, the US ranks fourth behind China, Russia and the United Arab Emirates (UAE) in terms of the value of goods and services India imports and has potential to become major energy supplier to the country.
The US’ imports to India increased by over 6% to $37.62 billion in the April 2024-January 2025 period as compared to $35.46 billion in April 2023-January 2024.
India’s exports to the US grew by 8.6% to $68.47 billion in April 2024-January 2025 against $63 billion in the same period previous year.
“US-India relationship is much beyond just the trade deal. There are many issues which involve many ministries. So, different ministries are also working to enhance cooperation with the US and officials from both sides are engaged on the broader outline given in the joint statement,” the first official said.