India Aims $500B US Trade, Plans Bilateral Agreement

India is aiming for a $500 billion bilateral trade partnership with the United States by 2030, with exporters optimistic about a potential trade agreement that could strengthen exports in key sectors like technology, defence, and green energy. The move is expected to enhance India’s competitiveness in global markets while attracting greater US investment.

Expanding Trade Ties & Negotiating a New Agreement

India’s bilateral trade with the US has grown steadily over the years, with industry leaders pushing for a comprehensive trade deal to further accelerate exports. Ashwani Kumar, President of the Federation of Indian Export Organisations (FIEO), emphasized the need to remove trade barriers, simplify regulatory processes, and strengthen market access to drive growth.

Trade expert Deep Kapuria, Chairman of Hi-Tech Gears, pointed out that the $500 billion target is a major outcome of Prime Minister Narendra Modi’s recent visit to Washington. Kapuria highlighted that the proposed agreement, which is expected to be negotiated by fall 2025, would create new investment opportunities for US businesses in India while expanding India’s footprint in global supply chains.

“A structured trade agreement will not only benefit India’s export-driven sectors but also position India as a key global supplier for US-based companies,” said Kapuria. He added that such a deal could help Indian industries integrate into global value chains, making Indian products more competitive in international markets.

Current Trade Trends & Potential Growth

As of 2023, bilateral trade between India and the US stood at $190.08 billion. India’s merchandise exports to the US totaled $83.77 billion, while imports amounted to $40.12 billion, resulting in a $43.65 billion trade surplus. In the services sector, India exported $36.33 billion worth of services, while imports stood at $29.86 billion, leaving a trade gap of $6.47 billion in India’s favor.

The proposed trade agreement is expected to further boost India’s exports by ensuring better market access, reducing tariff and non-tariff barriers, and creating new opportunities in emerging sectors. Experts believe that this agreement could drive India’s economic growth, allowing businesses to scale operations and compete at a global level.

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Strengthening India’s Global Trade Strategy

India’s push for a more structured trade relationship with the US aligns with its broader strategy to expand exports and reduce dependency on a few key markets. The new trade pact could open avenues for greater collaboration in areas like AI, semiconductor manufacturing, electric vehicles (EVs), and advanced engineering solutions.

The road to achieving the $500 billion trade target will require policy-level interventions, stronger collaboration between businesses from both countries, and an enabling environment that facilitates investment and trade expansion. As discussions progress, industry leaders and policymakers remain optimistic that a new agreement could redefine India-US trade relations, ensuring long-term economic benefits for both nations.

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