Announcement of India-U.S. trade agreement has boosted biz confidence: Piyush Goyal

Boosting business confidence, India and U.S. aim to double commerce to $500 billion by 2030 through bilateral trade agreement.

The announcement to negotiate a bilateral trade agreement between India and the U.S. has boosted business confidence in both countries, as it can help further strengthen economic ties by leveraging their competitive strengths, Commerce and Industry Minister Piyush Goyal said on Sunday (February 16, 2025).

During the recent visit of Prime Minister Narendra Modi to Washington, India and the U.S. announced to more than double the two-way commerce to $500 billion by 2030 and negotiate the first tranche of a mutually beneficial, multi-sector bilateral trade agreement (BTA) by fall of 2025.

"The Prime Minister has brought back with him an agreement or an understanding to enter into a trade deal by fall of this year. I think, it gives a lot of confidence and a lot of relief to every business person in the US and in India who believe that together, we can truly transform world trade, together with our competitive strengths in different areas, we can truly work as two friends, as two partners for progress and prosperity," Mr. Goyal said.

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 also ease norms to promote trade in services and boost investments.

During the first term of U.S. President Donald Trump, the two countries had discussed a mini-trade deal, but it was shelved by the Joe Biden administration as they were not in favour of such pacts.

The Commerce Minister also said that India is expanding and forging new partnerships across the world with new trade agreements with the developed world including with Australia, the UAE, and EFTA bloc.

The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.