India’s ongoing trade agreement negotiations with the United States are moving forward positively, according to Commerce and Industry Minister Piyush Goyal. Speaking at the Times Now Summit on Thursday, Goyal emphasised that the potential bilateral trade agreement would benefit both nations while safeguarding India’s interests.
“The discussions are ongoing. They are progressing well and will be for the good of both the United States and India,” Goyal stated. He added that the Indian industry across sectors, including agriculture, engineering, electronics, and textiles, is enthusiastic about the prospects of the deal.
India’s economic growth
Addressing concerns about market turbulence, Goyal assured that India’s economic growth story remains strong. “India, under Prime Minister Narendra Modi, will continue to steer its economy with our motto of India first. We are committed to taking India to become a global superpower by 2047,” he declared.
He acknowledged potential economic fluctuations but likened India to a flight under full control. “Turbulence may come, but the pilot has complete control. We will have many successful journeys towards Viksit Bharat 2047.”
Reciprocal tariffs
Goyal’s remarks come at a time when the United States has imposed reciprocal tariffs on key trading partners, including India. US President Donald Trump has criticised India’s high tariffs on US goods. Recent US tariffs include a 25% duty on steel and aluminum and a sweeping 25% tariff on completely built vehicles (CBUs) and auto parts.
Tariffs are government-imposed import duties that companies pay to bring foreign goods into a country. Indian exporters have expressed concerns that reciprocal tariffs could severely impact their businesses.
Progress in trade negotiations
Negotiations are being led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia. The three-day talks, aimed at finalising the first phase by fall 2025, will conclude on Friday. India and the US aim to double bilateral trade from over USD 190 billion to USD 500 billion by 2030.
Key trade sectors
The US has sought greater market access in industrial goods, automobiles, wines, petrochemicals, and agriculture. In response, India may lower tariffs on labour-intensive sectors like textiles.
India’s 2024 exports to the US included drug formulations (USD 8.1 billion), telecom instruments (USD 6.5 billion), and petroleum products (USD 4.1 billion). Imports from the US comprised crude oil (USD 4.5 billion), petroleum products (USD 3.6 billion), and coal (USD 3.4 billion).
To ease trade tensions, India has reduced tariffs on bourbon whiskey and certain wines. The scrapping of the equalisation levy on tech giants like Google also reflects India’s willingness to foster a conducive trade environment.
The US is pushing for a comprehensive trade agreement, seeking to open India’s agriculture sector. In 2024, US agri exports to India reached USD 1.6 billion, including almonds (USD 868 million) and ethanol (USD 266 million).
Despite uncertainties, both nations are working towards a mutually beneficial trade relationship, with a focus on doubling bilateral trade by 2030.