India and the United States are committed to expanding bilateral trade to USD 500 billion and finalizing a "strong" trade agreement within the next 6-8 months, Commerce and Industry Minister Piyush Goyal announced on Tuesday.

Following Prime Minister Narendra Modi’s visit to Washington, both nations agreed to more than double their trade volume by 2030 and finalize the first phase of a multi-sector bilateral trade agreement (BTA) by fall 2025. Discussions will formally begin once the new US trade representative assumes office.

"Businesses on both sides are eager for this agreement," Goyal stated on the sidelines of the CII India-Qatar Business Forum. However, he noted that the agreement’s scope—covering goods, services, and investments—would be determined after discussions with his US counterpart.

Bilateral trade between India and the US reached USD 190.08 billion in 2023, comprising USD 123.89 billion in goods and USD 66.19 billion in services. India enjoyed a trade surplus, with merchandise exports worth USD 83.77 billion against imports of USD 40.12 billion, leaving a gap of USD 43.65 billion in its favor. Similarly, in services trade, India exported USD 36.33 billion to the US while importing USD 29.86 billion, maintaining a surplus of USD 6.47 billion.

The US has consistently been India’s largest trading partner from 2021 to 2024. In 2023-24, their trade in goods alone amounted to USD 119.71 billion, with India exporting USD 77.51 billion and importing USD 42.19 billion, yielding a surplus of USD 35.31 billion.

America is also a key investor in India, contributing USD 67.8 billion in foreign direct investment between April 2000 and September 2024.

Negotiations for a trade deal had stalled under the Biden administration, but the renewed push signals a new chapter in economic cooperation between the two nations.

India and the United States are committed to expanding bilateral trade to USD 500 billion and finalizing a "strong" trade agreement within the next 6-8 months, Commerce and Industry Minister Piyush Goyal announced on Tuesday.

Following Prime Minister Narendra Modi’s visit to Washington, both nations agreed to more than double their trade volume by 2030 and finalize the first phase of a multi-sector bilateral trade agreement (BTA) by fall 2025. Discussions will formally begin once the new US trade representative assumes office.

"Businesses on both sides are eager for this agreement," Goyal stated on the sidelines of the CII India-Qatar Business Forum. However, he noted that the agreement’s scope—covering goods, services, and investments—would be determined after discussions with his US counterpart.

Bilateral trade between India and the US reached USD 190.08 billion in 2023, comprising USD 123.89 billion in goods and USD 66.19 billion in services. India enjoyed a trade surplus, with merchandise exports worth USD 83.77 billion against imports of USD 40.12 billion, leaving a gap of USD 43.65 billion in its favor. Similarly, in services trade, India exported USD 36.33 billion to the US while importing USD 29.86 billion, maintaining a surplus of USD 6.47 billion.

The US has consistently been India’s largest trading partner from 2021 to 2024. In 2023-24, their trade in goods alone amounted to USD 119.71 billion, with India exporting USD 77.51 billion and importing USD 42.19 billion, yielding a surplus of USD 35.31 billion.

America is also a key investor in India, contributing USD 67.8 billion in foreign direct investment between April 2000 and September 2024.

Negotiations for a trade deal had stalled under the Biden administration, but the renewed push signals a new chapter in economic cooperation between the two nations.