India, US Announce Ambition to Negotiate Partial FTA in 2025
India and the U.S. will negotiate a bilateral trade agreement that will cover multiple sectors in tranches, with the first aiming for completion in the fall of 2025, President Donald Trump and Indian Prime Minister Narendra Modi said in their joint statement, released after their meeting Feb. 13.
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They said its aims are to deepen trade in goods and services, deepen supply chain integration, and reduce tariff and non-tariff barriers. They said they would like to have $500 billion in two-way trade by 2030. In 2023, it was just over $190 billion.
The U.S. welcomed India's decision to lower tariffs on bourbon, motorcycles, information and communication technology products and metals, as well as measures to enhance market access for U.S. agricultural products, like alfalfa hay and duck meat, and medical devices. India said it appreciated measures that make it easier to import Indian mangoes and pomegranates.
"Both sides also pledged to collaborate to enhance bilateral trade by increasing U.S. exports of industrial goods to India and Indian exports of labor-intensive manufactured products to the United States," as well as to increase trade in agricultural goods, the statement said.
The statement noted that more than $7 billion in investment in the U.S. by Indian companies is supporting more than 3,000 jobs.