$500 Billion by 2030! India, US Set to Negotiate Landmark Multi-Sector Trade Agreement

India and the United States are set to negotiate a multi-sector Bilateral Trade Agreement (BTA) aimed at growing their two-way commerce to USD 500 billion by 2030, Minister of State for Commerce and Industry Jitin Prasada informed the Lok Sabha on Tuesday. The agreement will prioritize increasing market access, reducing import duties, and addressing non-tariff barriers while strengthening supply chain integration.

In a written reply, Prasada clarified that no reciprocal tariffs have been imposed by the US on India as of now. He emphasized that both nations are committed to a mutually beneficial trade deal, with negotiations for the first phase targeted for completion by fall 2025. This follows a commitment made during Prime Minister Narendra Modi’s visit to Washington in February, where both countries outlined their ambitious trade goals.

Bilateral trade in goods and services reached USD 190.08 billion in 2023, with merchandise exports from India to the US at USD 83.77 billion and imports at USD 40.12 billion, resulting in a USD 43.65 billion trade surplus for India. The US has been India’s largest trading partner from 2021 to 2024, and one of the few nations with which India enjoys a trade surplus. Key exports to the US in 2023-24 included engineering goods (USD 17.62 billion), electronics (USD 10 billion), and gems and jewellery (USD 9.9 billion).

Prasada noted that India’s tariff policy seeks to balance trade regulation, domestic industry protection, and revenue generation, with recent reforms simplifying the tariff structure. As a WTO member, India adheres to bound tariff limits but often applies lower rates. The country is also advancing Preferential and Free Trade Agreements (FTAs), currently part of 13 FTAs and 9 PTAs, with ongoing talks with the EU, UK, and Oman. Engagement with the US continues to focus on diversifying trade and ensuring fair, beneficial outcomes.