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New Delhi: Commerce and Industry Minister Piyush Goyal has embarked on an unscheduled visit to the US to initiate negotiations for a bilateral trade agreement, which both countries aim to finalize by the end of 2025.
During his visit to Washington, Goyal is expected to meet US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer to lay the groundwork for formal negotiations, which will be carried forward by officials from both sides.
Key Trade Agreement Goals
- Announced during PM Narendra Modi’s visit to the US in February, the agreement aims to double bilateral trade to $500 billion by 2030.
- In 2024, US-India trade stood at $129.2 billion, with India enjoying a trade surplus of $45.7 billion.
Challenges: Reciprocal Tariffs
- President Donald Trump’s push for reciprocal tariffs could impact India’s exports, especially in chemicals, metals, jewelry, automobiles, pharmaceuticals, and food products.
- The potential loss for India is estimated at $7 billion annually, as per Citi Research.
- The US plans to impose 25% tariffs on Canadian and Mexican imports and an additional 10% duty on Chinese goods, with some measures taking effect this week.
As the two nations prepare for complex negotiations, India looks to secure trade concessions while navigating US tariff policies.
