In 2022, the total trade between the two countries was $191.8 billion. India enjoys a $35 billion trade surplus with the United States. In the past, Trump often complained about the trade deficit with India and even called India a “tariff king”. Speaking to CNBC-TV18 immediately after the Union Budget, Commerce Minister Piyush Goyal said he expects both countries to strike a forward-looking economic partnership, including trading arrangements. “We want to work even more closely with the US to expand the partnership. We want to make sure American goods get a fair tariff regime and Indian goods get an equal opportunity in the United States,” he said.
In order to bridge the US trade deficit with India, it is likely that the Centre will offer to buy more defence equipment from the United States. Ahead of the Prime Minister’s visit to the USA, the Indian government is considering procuring more C-130 Hercules military transport aircraft and P-8I maritime patrol aircraft from the US. India may also express its intention to buy more crude oil and LNG from the US.India and the US were very close to signing a mini trade deal in 2020, but the Biden administration set aside plans to have a trade agreement with India. Mark Linscott, the Former Assistant USTR and Senior Advisor to USISPF, had earlier told CNBC-TV18 that even in the current Trump administration, there were officials who are in favour of an early trade deal with India.
First Published: Feb 5, 2025 7:17 PM IS
