India and the United States are stepping up efforts to seal a major bilateral trade agreement, with the aim of doubling their trade volume to $500 billion by 2030 – a massive jump from the current $191 billion.
Officials have already finalized the Terms of Reference (ToRs) for the proposed deal, which will cover 19 key areas like goods, services, customs, and investments.
ЁЯзСтАНЁЯТ╝ Indian Delegation to Visit Washington
A high-level Indian delegation led by Rajesh Agrawal, the new commerce secretary (taking full charge in October), is heading to Washington next week. The team will hold in-person negotiations from April 23 to 25.
This comes shortly after a US trade team, led by Brendan Lynch, visited India in March, following up on senior-level discussions that month.
тП│ Why the Rush?
Negotiations are being fast-tracked to take advantage of a 90-day tariff suspension announced by US President Donald Trump on April 9. This pause gives both sides until July 9 to work out a fair agreement and avoid steep tariffs.
IndiaтАЩs Commerce Secretary Sunil Barthwal recently reaffirmed the country’s commitment to speed up talks and follow a path of trade liberalization with the US.
ЁЯТ╝ WhatтАЩs in the Deal?
- For the US: Seeking greater access to the Indian market for:
- Electric vehicles (EVs)
- Wines and dairy products
- Industrial goods
- Petrochemicals
- Apples, tree nuts, and alfalfa hay
- For India: Hoping for tariff cuts and more access for:
- Textiles and apparel
- Gems and jewellery
- Leather goods
- Shrimp and oilseeds
- Horticultural exports
- Chemicals and plastics
ЁЯУК Trade Snapshot
India currently enjoys a trade surplus with the US:
- 2024тАУ25 surplus: $41.18 billion
- 2023тАУ24 surplus: $35.32 billion
- 2022тАУ23 surplus: $27.7 billion
This growing gap has raised concerns in Washington, prompting new tariffs (26% on Indian goods) announced on April 2 – but suspended for 90 days.
ЁЯУИ IndiaтАЩs Top Exports to the US (2024)
- Pharma & Biologics: $8.1B
- Telecom Equipment: $6.5B
- Precious Stones: $5.3B
- Petroleum Products: $4.1B
- Jewellery: $3.2B
- Cotton Garments: $2.8B
- Iron & Steel: $2.7B
ЁЯУЙ Top Imports from the US
- Crude Oil: $4.5B
- Refined Petroleum: $3.6B
- Coal & Coke: $3.4B
- Polished Diamonds: $2.6B
- Machinery & Electronics: $1.4B
- Aircraft Parts: $1.3B
- Gold: $1.3B
With the upcoming Washington round of talks, both sides hope to iron out pending issues and push closer to a historic IndiaтАУUS trade deal that could reshape economic ties for the next decade.
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