Commerce and Industry Minister Piyush Goyal is scheduled to commence his visit to Washington on Monday as India and the United states prepare to initiate negotiations for a proposed bilateral trade agreement, an official confirmed.During his visit, Goyal is expected to engage in discussions with US Trade Representatives (USTR) Jamieson Greer and US Commerce Secretary Howard Lutnick, the official said, reported PTI.The visit follows the commitment made by both nations during Prime Minister Narendra Modi’s recent visit to Washington, where India and the US pledged to more than double their bilateral trade to $500 billion by 2030 and finalise the first phase of a multi-sector Bilateral Trade Agreement (BTA) by the autumn of 2025.
Read more: Xi Jinping prepares to unveil China stimulus plan as trade war heats upLast month, Goyal reiterated India’s dedication to enhancing trade ties with US, stating that both nations are determined to reach the $500 billion trade target while working on a “strong” trade agreement over the next six to eight months.The timing of the visit is crucial, as US President Donald Trump has announced intentions to impose higher tariffs on Indian goods. Goyal previously indicated that India and the US could consider offering mutual concessions and duty reductions, as their economies are largely complementary.Trump’s plan to introduce reciprocal tariffs from early April has raised concerns among Indian exporters across sectors such as automobiles and agriculture. Analysts at Citi Research estimate that these tariffs could lead to annual losses of approximately $7 bn for India, reported Reuters.Read more: India considers tariff cuts on cars, chemicals to counter Trump’s trade measuresDuring his visit, Goyal will seek clarity on the US tariff measures to evaluate their potential impact on India. He may also explore possible Indian possible concessions for India, with negotiations on industrial goods such as automobiles and chemicals but remaining firm against lowering tariffs on agricultural products. Officials argue that doing so could adversely affect millions of economically vulnerable farmers, Reuters report stated.Discussions on a mini-trade agreement were held during Donald Trump’s first term, but the proposal was later set aside by the Joe Biden administration, which was not inclined towards such pacts.In 2023, India-US trade in goods and services was recorded at $190.08 billion, with goods trade accounting for $123.89 billion and services trade at $66.19 billion, as per a PTI report.Read more: Non-tariff barriers hurt trade 2.5 times more than tariffs: Govt sourcesThat year, India’s merchandise exports to the US stood at $83.77 billion, while imports totalled $40.12 billion, leading to a trade surplus of $43.65 billion in India’s favour.Between 2021 and 2024, United States was India’s largest trading partner, one of the few countries which India maintains a trade surplus. In 2023-24, bilateral goods trade between the two nations stood $42.19 billion, with Indian exports at $77.51 billion and imports at $42.19 billion, leaving a surplus of $35.31 billion in India’s favour.(With inputs from agencies)
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