India and the United States are working towards significantly expanding their trade relationship, setting an ambitious goal to double bilateral trade to $500 billion by 2030. According to India’s Commerce and Industry Minister, Piyush Goyal, both nations are in the process of finalizing a comprehensive trade agreement, expected to be completed within the next six to eight months. This initiative follows Prime Minister Narendra Modi’s recent visit to Washington, where leaders from both sides agreed on this trade expansion target. The initial phase of the agreement, covering multiple sectors, is scheduled for negotiations by fall 2025. Discussions will progress once the new US trade leadership assumes office.
In 2023, trade between India and the US totaled $190.08 billion. India’s exports amounted to $83.77 billion, while imports stood at $40.12 billion, creating a trade surplus of $43.65 billion in India’s favor. Additionally, the services sector also recorded a surplus for India, with service exports at $36.33 billion and imports at $29.86 billion. The United States has consistently been India’s top trading partner since 2021, one of the few nations with which India maintains a trade surplus.
Between April 2000 and September 2024, the US invested $67.8 billion in India through foreign direct investments (FDI). This strong economic partnership has encouraged both nations to work on eliminating trade barriers, easing regulations for service industries, and fostering higher investment flows. The upcoming trade deal aims to streamline policies and strengthen economic collaboration, reinforcing India and the US as key global trade partners.
