India and US to Hold Crucial Trade Talks

Indian and US officials are set to begin formal discussions on a proposed bilateral trade agreement (BTA) in Washington. These talks, spanning three days, aim to address outstanding issues and push negotiations forward. With 19 chapters on the table, including tariffs and non-tariff barriers, both nations are looking to create a win-win situation for their economies.

Key objectives of the agreement include expanding market access for American products and ensuring long-term benefits for workers, farmers, and entrepreneurs in both countries. The US is particularly focused on reducing its trade deficit with India, which stood at USD 45.7 billion in 2024.

Ambitious Trade Goals

The BTA aims to dramatically increase bilateral trade from USD 191 billion to USD 500 billion by 2030. This will involve reducing or eliminating customs duties on goods and easing regulations to boost services and investment. Sectors such as industrial goods, automobiles, and agriculture are at the forefront of these discussions.

India, on its part, is expected to seek duty reductions on exports like textiles, apparel, and seafood, which are crucial for its labor-intensive sectors.

Trade Relations at a Glance

The US has been India's largest trading partner since 2021-22. Recent figures show a 11.6% increase in India's exports to the US, reaching USD 86.51 billion, while imports grew by 7.44% to USD 45.33 billion. India's trade surplus with the US highlights the dynamic nature of their economic relationship.