India, US plan trade deal to boost market access

New Delhi

India and the United States are negotiating a Bilateral Trade Agreement (BTA) to enhance market access, reduce tariffs, and improve supply chain integration, Minister of State for Commerce and Industry Jitin Prasada informed Parliament on Tuesday.

The US has not imposed reciprocal tariffs on India, and both nations aim to finalize the first phase of the agreement by fall 2025. During Prime Minister Narendra Modi’s visit to Washington last month, both sides committed to doubling bilateral trade to $500 billion by 2030.

Commerce Secretary Sunil Barthwal recently told a Parliamentary panel that negotiations on trade tariffs are ongoing, refuting claims that India has agreed to reduce tariffs significantly. Meanwhile, Foreign Secretary Vikram Misri briefed lawmakers on trade discussions with China and Europe.

India’s major exports to the US include engineering goods ($17.62 billion), electronics ($10 billion), gems and jewelry ($9.9 billion), petroleum products ($5.83 billion), textiles ($4.7 billion), and marine products ($2.5 billion).

Prasada emphasized that India continues to engage with the US to expand trade relations while safeguarding domestic industries. The government is also focusing on preferential and free trade agreements to ease tariff and non-tariff barriers for key trade partners.

BOX

o US-India trade reached $190.08 billion in 2023.

o India’s merchandise exports to the US: $83.77 billion.

o India’s trade surplus with the US: $43.65 billion.

o US was India’s largest trading partner (2021-2024).

o Engineering goods: $17.62 billion of India’s US exports.