India and the United States are on the verge of finalizing a major trade deal that could reshape their economic relationship. Piyush Goyal, the Commerce and Industry Minister, has indicated that an agreement to boost bilateral trade to $500 billion is likely to be concluded within the next six to eight months, according to PTI.

During Prime Minister Narendra Modi’s recent visit to Washington DC, both countries unveiled an ambitious plan to more than double their trade by 2030. As part of this goal, India and the US have agreed to begin negotiations on a comprehensive Bilateral Trade Agreement (BTA) by the fall of 2025, marking a significant step toward enhanced economic collaboration.

Goyal highlighted that trade discussions would commence once the new US Commerce Secretary is in place, with businesses in both nations expressing eagerness for the deal. Regarding the scope of the agreement, including goods, services, and investments, Goyal mentioned that they are awaiting confirmation from his US counterpart before moving forward with detailed talks.

Such a trade deal typically aims to reduce tariffs on goods, streamline regulations for services, and encourage investment. This is expected to open up new opportunities for industries in both countries and improve the flow of goods and services. Previously, during the Trump administration, India and the US had explored a smaller-scale trade deal, but the Biden administration chose to focus on broader trade policies instead.

In 2023, the US-India bilateral trade reached $190.08 billion, including $123.89 billion in goods and $66.19 billion in services. India recorded a trade surplus, with exports of goods to the US amounting to $83.77 billion, compared to imports of $40.12 billion. In services, India exported $36.33 billion while importing $29.86 billion, resulting in a surplus of $6.47 billion. Since 2021, the US has been India's largest trading partner, and this trend continued through 2023-24, with India securing a trade surplus of $35.31 billion in goods.

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