Indian government seeks win-win trade deal with the US

Prime Minister Narendra Modi and US President Donald Trump aim to finalise a bilateral trade agreement by 2025. The deal focuses on reducing import duties, removing non-tariff barriers, and increasing trade in oil, gas, and defence equipment. Both leaders plan to enhance trade in agricultural goods, industrial goods, and labour-intensive manufactured products.

India plans to boost its purchase of US energy by two-thirds to $25 billion soon, following discussions between PM Modi and President Trump. Currently, the US is the fifth-largest crude exporter to India. To achieve this increase, US oil and gas must be competitively priced to offset higher freight costs compared to other suppliers.

India and the US have resumed discussions on a limited trade deal to address the trade imbalance. Key outcomes include lower tariffs on US goods and resolved disputes under the WTO. High tariffs remain on Indian textiles, garments, and footwear, with reciprocal tariffs on Indian goods by the US.

India and the United States aim to finalize the first phase of a Bilateral Trade Agreement by fall, focusing on increased market access and reducing trade barriers. This agreement, part of ‘Mission 500’, seeks to double bilateral trade to $500 billion annually by 2030 while enhancing supply chain integration and investment opportunities.

India’s exports of machinery and components to Germany surged to USD 4.13 billion in 2024, an impressive four-fold increase from the previous year, and expected to continue growing in double digits. Indo-German trade, particularly in the machinery sector, remains robust, contributing significantly to bilateral trade growth.

India’s merchandise exports for 2024-25 are projected to reach $446.5 billion, reflecting a 2.2% increase over the previous fiscal year, according to the Export-Import Bank of India. Positive factors include a strong agricultural harvest, a revival in manufacturing, and improving demand from trading partners, despite potential risks from trade policy uncertainty and geopolitical tensions.

Donald Trump on Brics: US President Donald Trump has threatened a 100% tariff on all imports from BRICS nations if they launch a common currency. Dismissing BRICS’ relevance, Trump emphasized the US’s leverage over the bloc, warning against attempts to undermine the US dollar. These comments highlight escalating global trade tensions, particularly with China, India, […]

Prime Minister Narendra Modi announced that the U.S. and India aim to double their bilateral trade to $500 billion by 2030, and work on a trade agreement soon. During a press conference with President Donald Trump, Modi highlighted cooperation in artificial intelligence and semiconductors, while Trump emphasized reducing trade barriers and implementing reciprocal tariffs to […]

President Donald Trump and Indian Prime Minister Narendra Modi committed to negotiating fair trade terms and potentially increasing U.S. tariffs on Indian goods. Trump stressed achieving a balance in the trade relationship, while both leaders discussed economic and military collaborations, including increased military sales and the potential extradition of a 2008 Mumbai attacks plotter.

U.S. President Donald Trump on Thursday warned of 100% tariffs on BRICS nations if they “play games with the dollar,” referring to discussions around non-dollar trade mechanisms. While Trump targeted Brazil, Russia, India, and China, sources clarified that BRICS has no proposal for a single currency, focusing instead on bilateral trade in national currencies.