India and US Strengthen Trade Ties: Piyush Goyal Concludes Key Washington Talks
Piyush Goyal’s Washington Visit: India and US Aim for $500 Billion Trade Goal
Commerce and Industry Minister Piyush Goyal has returned to India after a week-long visit to Washington, where he engaged in high-level trade discussions with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. The discussions mark a significant step toward strengthening economic ties between the two nations as they work towards a comprehensive Bilateral Trade Agreement (BTA).
Piyush Goyal: A Major Leap in India and US Trade Relations
The negotiations between India and the United States have gained momentum, particularly in the wake of Prime Minister Narendra Modi’s recent visit to Washington. Both nations have set an ambitious target of expanding bilateral trade to USD 500 billion by 2030. As part of this effort, India and the US aim to finalize the first phase of their multi-sector Bilateral Trade Agreement by fall of 2025.
During the discussions, Commerce Secretary Howard Lutnick emphasized the need for a “macro, large, and grand trade agreement” rather than negotiating on a product-by-product basis. He urged India to open its agricultural market, asserting that it cannot be excluded when negotiating with its largest trading partner.
US Pushes for Lower Tariffs and Market Access
US President Donald Trump, speaking on Friday, reiterated that India has agreed to significantly reduce its tariffs, addressing longstanding concerns over market access for American goods. “India imposes massive tariffs on US products, making it tough for us to compete. This will now change,” Trump stated.
With the US being India’s largest trading partner, these changes could redefine bilateral economic engagements. In 2023-24, the India-US bilateral trade in goods stood at USD 119.71 billion, with India enjoying a trade surplus of USD 35.31 billion, Piyush Goyal asserted. The US remains one of the few countries with which India holds a trade surplus, reflecting the strength of its exports, particularly in goods and services.
India-US Trade in Numbers
The growing partnership is reflected in the numbers:
- 2023 US-India bilateral trade: USD 190.08 billion
- India’s merchandise exports to the US: USD 83.77 billion
- India’s imports from the US: USD 40.12 billion
- Trade gap in favor of India: USD 43.65 billion
- India’s services export to the US: USD 36.33 billion
- US services exports to India: USD 29.86 billion
- Total trade surplus in favor of India: USD 6.47 billion
Piyush Goyal: Foreign Direct Investment & Future Prospects
Beyond trade, the US remains a key investor in India. Between April 2000 and September 2024, India received USD 67.8 billion in foreign direct investment (FDI) from the US, further strengthening economic collaboration, says Piyush Goyal.
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