India, US complement each other, can offer mutual trade concessions: Goyal

During the recent visit of Prime Minister Narendra Modi to Washington, India and the US announced to more than double the two-way commerce to $500 billion by 2030

With India and the US preparing to start negotiations for a bilateral trade agreement, Commerce and Industry Minister Piyush Goyal on Tuesday said the two countries can offer concessions and duty reductions, as their economies complement each other.

 

During the recent visit of Prime Minister Narendra Modi to Washington, India and the US announced their commitment to more than double the two-way commerce to $500 billion by 2030 and negotiate the first tranche of a mutually beneficial, multi-sector bilateral trade agreement (BTA) by fall of 2025. 

 

"We complement each other, we can give mutual concessions to each other, tariff reductions and make it easier to export and import between the two countries," he said, adding, "We have started working on different ideas, engaging with different stakeholders within and outside the government and preparing ourselves for discussions, (which) we hope we will start soon."

 

He added that the agreement will open opportunities for the domestic industry to expand trade with the US to $500 billion by 2030.

 

"We look at this opportunity as a way to make India more competitive, come out with quality products, look at mutual concessions and attractive trading conditions which will support growth both in America and in India," Goyal said at the NDTV Profit Conclave 2025.

 

On reciprocal tariffs, the minister said India's tariffs are there to protect domestic industry from imports from non-market economies.

 

"What we are working on is for mutual benefit resolving these issues for both our countries... Our situation with the US is different from the situation of many other countries," he said.

 

Further, he said that there should be no cause of concern to the domestic industry from the trade negotiations with the US, and India should enter these negotiations from a position of strength.

 

"I do not see any cause of concern...this is a golden opportunity for business and will open floodgates of new business opportunities. My sense is that those who are panicking today will regret tomorrow," he said.

 

Earlier in the day at a CII event, Goyal said that India and the US are committed to increasing bilateral trade to $500 billion and negotiating a "strong" trade agreement within the next 6-8 months.

 

Goyal said once his US counterpart takes charge, both countries will discuss the contours of the pact.

 

"...In the next 6-8 months, by establishing a strong trade agreement, we are committed to increasing trade to $500 billion," Goyal told reporters here on the sidelines of CII's India-Qatar Business Forum meet.

 

When asked if the pact would have chapters related to goods, services and investments, he said, "My counterpart has not yet confirmed in the US...After the (confirmation), we will do talks and then only we can decide the way forward."

 

Normally in a free trade agreement, two trading partners either eliminate or significantly reduce customs duties on the maximum number of goods traded between them. Besides, they ease norms to promote trade in services and boost investments.

 

During the first term of US President Donald Trump, the two countries had discussed a mini trade deal, but it was shelved by the Joe Biden administration as they were not in favour of such pacts.

 

In 2023, the US-India bilateral trade in goods and services stood at $190.08 billion ( $123.89 billion in goods and $66.19 billion in services trade). In that year, India's merchandise exports to the US stood at $83.77 billion, while imports were $40.12 billion, leaving a trade gap of $43.65 billion in favour of India.

 

The country's services export to America was $36.33 billion in 2023, while imports were aggregated at $29.86 billion. The trade gap (difference between imports and exports) was $6.47 billion in favour of New Delhi.

 

During 2021-24, America was the largest trading partner of India. The US is one of the few countries with which India has a trade surplus.

 

In 2023-24, the US was the largest trading partner of India with $119.71 billion bilateral trade in goods ( $77.51 billion worth of exports, $42.19 billion of imports and $35.31 billion trade surplus).

 

India received $67.8 billion in foreign direct investments from America during April 2000 and September 2024.