India, US committed to boost trade to Rs 43,46,200 crore through strong agreement in next 6-8 months: Piyush Goyal

New Delhi: India and the US are committed to increasing bilateral trade to Rs 43,46,200 crore ($500 billion) and negotiating a "strong" trade agreement within the next 6-8 months, Commerce and Industry Minister Piyush Goyal said on Tuesday.

During the recent visit of Prime Minister Narendra Modi to Washington, India and the US announced to more than double the two-way commerce to Rs 43,46,200 crore ($500 billion) by 2030 and negotiate the first tranche of a mutually beneficial, multi-sector bilateral trade agreement (BTA) by fall of 2025.

Goyal said once his US counterpart takes charge, both countries will discuss the contours of the pact.

"...In the next 6-8 months, by establishing a strong trade agreement, we are committed to increasing trade to USD 500 billion," Goyal told reporters on the sidelines of CII's India-Qatar Business Forum meet.

He added businesses of both the countries are excited about the agreement.

When asked if the pact would have chapters related to goods, services and investments, he said, "My counterpart has not yet confirmed in the US...After the (confirmation), we will do talks and then only we can decide the way forward".

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 ease norms to promote trade in services and boost investments.

During the first term of US 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.

In 2023, the US and India bilateral trade in goods and services stood at Rs 16,52,213 crore ($190.08 billion) [Rs 10,77,223 crore ($123.89 billion) in goods and Rs 5,75,336 crore ($66.19 billion) in services trade].

In that year, India's merchandise exports to the US stood at Rs 7,28,145 crore ($83.77 billion), while imports were Rs 3,48,743 crore ($40.12 billion), leaving a trade gap of Rs 3,79,427 crore ($43.65 billion) in favour of India.

The country's services export to America was Rs 3,15,794 crore ($36.33 billion) in 2023, while imports were aggregated at Rs 2,59,555 crore ($29.86 billion). The trade gap (difference between imports and exports) was Rs 56,250 crore ($6.47 billion) in favour of New Delhi.

During 2021-24, America was the largest trading partner of India. The US is one of the few countries with which India has a trade surplus.

In 2023-24, the US was the largest trading partner of India with Rs 10,40,579 crore ($119.71 billion) bilateral trade in goods [Rs 6,73,747 crore ($77.51 billion) worth of exports, Rs 3,66,732 crore ($42.19 billion) of imports and Rs 3,06,928 crore ($35.31 billion) trade surplus].

India received Rs 5,89,344 crore ($67.8 billion) in foreign direct investments from America during April 2000 and September 2024.