The United States and India are on the cusp of a significant trade breakthrough, with a dedicated team working to finalize a bilateral trade deal designed to slash tariffs and boost economic ties. This week, a high-level Indian delegation will travel to America to accelerate negotiations that have been underway since February. The momentum behind these talks is palpable, following a recent call between Prime Minister Narendra Modi and President Donald Trump where progress was acknowledged.
Sources close to the development report that five rounds of discussions have already taken place, with both sides expressing confidence in the “right direction” of the talks and anticipating a “steady breakthrough.” The urgency is amplified by the evolving geopolitical landscape, as the U.S. seeks to strengthen its economic partnerships globally. The U.S. has signaled its displeasure with China’s trade practices, particularly its restrictions on rare earth exports, and is looking to India for support in presenting a united front.
During a recent visit, India’s Commerce and Industry Minister met with key U.S. trade representatives, reinforcing the commitment to reach a mutually advantageous agreement. A critical aspect of the negotiations involves addressing the 50% retaliatory tariffs levied by the U.S. on certain Indian exports. An agreement is projected to significantly reduce these barriers, fostering greater trade flow.
The overarching aim of this proposed pact is to elevate bilateral trade from its current $191 billion to an ambitious $500 billion by 2030. With the U.S. maintaining its position as India’s top trading partner for several years, this deal holds immense potential for economic growth and job creation in both nations.