India, US Eye $500 Billion Trade Target; Sectoral Talks For Bilateral Trade Agreement To Commence Soon | Representative Image
India and the United States have agreed to begin sectoral discussions under the proposed Bilateral Trade Agreement (BTA) reportedly within the next few weeks, with a view of expanding their trade relationship. The decision comes after four days of extensive negotiations between senior officials from the both nations, building on the India-US Joint Statement from February 13. The trade negotiations are expected to elevate bilateral trade to $500 billion by 2030.
BTA Negotiations Between India & US
According to a statement issued by India’s commerce ministry, sectoral expert-level discussions under the BTA will begin virtually in the next few weeks, eventually leading to an in-person negotiating round. The talks, which followed Commerce Minister Piyush Goyal’s visit to Washington earlier this month, aim to improve market access, lower tariff and non-tariff barriers, and bring supply chains together in a way that benefits them mutually. Both sides are pushing to conclude the first tranche of the BTA by fall 2025 with the goal of fostering growth that is equitable, ensures national security, and creates jobs.
“The successful conclusion of the discussions reflects progress in efforts to expand India-US bilateral trade and investment relations to promote prosperity, security and innovation in both the countries,” said the commerce ministry, as quoted by News 18.
Key Areas of Discussion
During the talks, India and the US had fruitful discussions on deepening bilateral cooperation in a number of priority sectors, including tariff and non-tariff barriers, market access, and supply chain integration. A US delegation headed by the Assistant US Trade Representative for South and Central Asia, Brendan Lynch, attended the talks, which were focused on laying the foundation for the first phase of the BTA.
“India and the US expressed satisfaction with the outcomes of the meeting and reaffirmed their dedication to ongoing collaboration,” the ministry said, as per a report by News 18. Both countries are eagerly awaiting finalising the BTA in accordance with their common aspirations of mutual interest.
Trump’s Statement on Tariff Negotiations
US President Donald Trump also weighed in on the trade talks, calling Prime Minister Narendra Modi a “very smart man” and a “great friend.” Trump added that tariff discussions would “work out very well” between the two countries. Trump’s statement comes as a surprise, as he had earlier criticised India’s high tariffs on American products. On April 2, the US will impose reciprocal tariffs on its major trading partners, including India, over these concerns.
Meanwhile, as trade negotiations continue, both India and the US are looking at a long-term partnership, with the first phase of the deal expected to be concluded by the fall of 2025.
