India, US To Boost Trade To $500 Billion Through Agreement In 6-8 months: Goyal

New Delhi: India and the US are committed to negotiating a "strong" trade agreement and increasing bilateral trade to USD 500 billion within the next 6-8 months, Commerce and Industry Minister Piyush Goyal said on Tuesday.

According to a PTI report, India and the US announced to more than double the two-way commerce to USD 500 billion by 2030 and negotiate the first tranche of a mutually beneficial, multi-sector bilateral trade agreement (BTA) by fall of 2025 during Prime Minister Narendra Modi's recent visit to Washington.

"...In the next 6-8 months, by establishing a strong trade agreement, we are committed to increasing trade to USD 500 billion," Goyal said on the sidelines of CII's India-Qatar Business Forum meet while mentioning that once his US counterpart takes charge, both countries will discuss the contours of the pact.
 
Regarding whether the pact would have chapters related to goods, services and investments, Goyal shared that his US counterpart has not yet confirmed. The way forward will be decided only after confirmation.

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.

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Meanwhile, the US and India bilateral trade in goods and services stood at USD 190.08 billion (USD 123.89 billion in goods and USD 66.19 billion in services trade) in 2023. During 2021-24, America was India's largest trading partner. The US is one of the few countries with which India has a trade surplus. 

In 2023-24 too, the US was the largest trading partner of India with USD 119.71 billion in bilateral trade in goods (USD 77.51 billion worth of exports, USD 42.19 billion of imports and USD 35.31 billion trade surplus). India received USD 67.8 billion in foreign direct investments from America during the April 2000 and September 2024 period. ​