India, US set $500 billion trade target by 2030, announce plan for mega trade deal

PTI washington

India and the US have resolved to more than double the two-way trade to USD 500 billion by 2030 and announced plans for a bilateral trade agreement with a view to bringing down duties and increase market access.

According to the joint statement issued after the meeting of Prime Minister Narendra Modi and US President Donald Trump here, the two leaders have also pledged the bilateral trade relationship to promote growth that ensures fairness, national security and job creation.

"To this end, the leaders set a bold new goal for bilateral trade - Mission 500 - aiming to more than double total bilateral trade to USD 500 billion by 2030. Recognizing that this level of ambition would require new, fair-trade terms, the leaders announced plans to negotiate the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall of 2025," it said.

The statement further said that both sides committed to designate senior representatives to advance these negotiations and to ensure that the trade relationship fully reflects the aspirations of the COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology).

"To advance this innovative, wide-ranging BTA, the US and India will take an integrated approach to strengthen and deepen bilateral trade across the goods and services sector, and will work towards increasing market access, reducing tariff and non-tariff barriers, and deepening supply chain integration," it added. During the first term of President Donald Trump, India and the US had discussed a mini-trade deal, but was shelved by the Joe Biden administration as they were not in favour of a FTA.