NEW DELHI: India and the United States are set to start important talks next month to create a new trade deal. This comes after a meeting between Indian Prime Minister Narendra Modi and US President Donald Trump last week. The leaders of both countries want to change how they do business and aim for $500 billion in trade by 2030.
The talks will kick off once the new US Secretary of Commerce and the United States Trade Representative begin their roles. Officials say the goal is to finish a multi-sector trade agreement in about eight to nine months. They want a deal that is fair for both sides, and there’s no plan for a small or partial agreement.
Some areas they will discuss include increasing manufacturing jobs and trading more agricultural products. The US already sells over $4 billion worth of agricultural goods to India each year, and both countries could gain more if they trade even more in this area.
India has a trade deficit of $45.7 billion with the US, meaning it buys more from America than it sells. However, with India’s economy growing fast, demand for US products will increase, helping to balance this trade deficit. The US is currently the fourth-largest supplier of goods to India, following China, Russia, and the UAE, and has the potential to supply more energy.
From April 2024 to January 2025, US imports to India grew by over 6%, rising from $35.46 billion to $37.62 billion. Meanwhile, India’s exports to the US increased by 8.6%, going from $63 billion to $68.47 billion during the same period.
Officials state that the relationship between the US and India is not only about trade. Multiple government departments are working together to improve cooperation, and representatives from both countries are actively collaborating on the details outlined in their recent agreement.
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