India and the United States have agreed to complete the first phase of a mutually beneficial trade agreement this year. Both countries have set a target to increase their annual bilateral trade to $500 billion by 2030.
However, US President Donald Trump has warned that the US will not hesitate to impose retaliatory tariffs on India if necessary.
Trump and Modi Discuss Trade Issues
President Donald Trump hosted Prime Minister Narendra Modi at the White House, where they discussed trade-related issues. This meeting took place just hours after Trump announced his policy of imposing tariffs on all US trading partners.
During the meeting, Trump and Modi launched a new initiative called “21st Century US-India Compact”, which aims to strengthen military ties, boost trade, and create new opportunities in technology.
India to Import More US Oil and Gas
At a joint press conference with Modi, Trump announced that both leaders had agreed on a deal that would allow India to import more oil and gas from the US. This would help reduce the US trade deficit with India.
Trump criticized India’s import duties on some American products, calling them “very unfair” and “harsh.”
Last year, India-US bilateral trade was around $130 billion, with India having a trade surplus of about $45 billion.
PM Modi’s Statement on Trade Growth
PM Modi stated,
“Today, we have set a target to increase our bilateral trade to $500 billion by 2030. Our teams will work together to complete a mutually beneficial trade agreement soon.”
He also mentioned that India will work on strengthening its energy trade with the US to ensure energy security. Both nations will increase investment in energy infrastructure as well.
Trade Barriers to be Removed
Officials confirmed that both leaders expressed their commitment to removing trade barriers between the two countries.
Modi and Trump discussed concerns about market access and the impact of global trade competition. They directed their teams to work on a trade agreement that benefits both nations.
Mission 500: A Bold New Target
The joint statement emphasized the commitment to expanding US-India trade ties to promote fairness, national security, and job creation.
A new goal called “Mission 500” was set to double trade to $500 billion by 2030.
To achieve this, both leaders agreed that new and fair trade terms would be needed. They announced a plan to complete the first phase of the bilateral trade agreement (BTA) by the end of 2025.
Both nations will work together to increase US exports of industrial goods to India and boost Indian exports of labor-intensive products to the US. They also agreed to enhance agricultural trade.
Investment Opportunities for Companies
Modi and Trump committed to creating investment opportunities for US and Indian companies in each other’s countries.
They welcomed ongoing investments worth approximately $7.35 billion by Indian companies in the US.
This growing economic partnership is expected to strengthen both economies and open new trade opportunities for businesses in both countries.
