A joint statement issued by Prime Minister Narendra Modi and US President Donald Trump on 13 February set out the goal of closing interviews in the autumn of 2025. The leaders decided to deepen the business relationship in India in India to support growth, which ensures justice, national security and job creation. To this end, the leaders set a bold new goal for bilateral trade – “mission 500” – by 2030 he focuses on more than double bilateral trade at $ 500 billion.
The proposed commercial agreement, for which the discussion is taking place, saw both parties after more than a monthly patometch, while the US delegation visited the new Delh on 16 September, followed by an Indian team led by the Minister of the Union Piyush Goyal, visited Washington and organized interviews from 22 to 24 September.
Comprehensive agreement
“The pact will apply to key sectors such as defense, energy, goods trade, technology, space and atomic energy, but problems such as patents and some regulatory matters remain outside their scope,” he said. “It will also include services and investment flows, while dealing with procedural obstacles that businesses face in access to the markets of the other.”
With me
- India and the US conclude a comprehensive agreement, with the exception of patents and regulatory matters.
- Objective: “Mission 500” bilateral trade, aimed at $ 500 billion by 2030, set by leaders.
- The commercial agreement includes defense, energy, technology, services, investment and procedural to reduce the barrier.
- American tariffs in India reached 50% as a result of buying Russian oil, which hurts key export sectors.
- Indian exporters diversify markets, including China and SAE, to face high American tariffs.
Indian exports to the US increased from $ 34.21 billion in FY25 (April – August) to $ 40.35 billion in the same period 26, an increase of 18.0%. Imports also increased by 8.5%, from $ 19.91 billion to $ 21.61 billion. This brought total bilateral trade between India and the US to $ 61.96 billion in FY26, from $ 54.12 billion in FY25, which means growth of 14.5%.
Questions sent to the Ministry of Trades and external items remained unanswered.
Both sides organized five rounds of personal interviews and the sixth round, which was to be planned from August 25, was stopped in the middle of a stalemate above the American urgent that India was opening critical sectors such as agriculture, dairies and crops of GM for American products. This problem was first reported by Mint 11 June.
Good progress
“The interviews are doing well and we hope to complete the agreement in the timeline listed in a joint statement,” the other person said.
In response to the question, a spokesman for the US embassy said: “We refer you to the UNS for the specifics of business negotiations.” “We appreciate our constant cooperation with the Indian government on business and investment matters and look forward to continuing to develop a productive and balanced business relationship between our two countries,” the spokesman said.
The agreement with the US is critically important for the industry -intensive industry, such as textiles, gems and jewelry, leather products, agricultural products and shrimp, because these industries face significant threats.
According to the Ministry of the Ministry of Trade, bilateral US trade was $ 131.84 billion in FY25, exporting $ 86.51 billion and imports of $ 45.33 billion, resulting in a $ 41.18 billion trade surplus. In FY24, exports were $ 77.52 billion and imports $ 42.19 billion, which reached $ 119.71 billion, with a sales surplus of $ 35.33 billion.
Russian obstacle
Previously, Mint 25 September reported that the US had asked India to provide certainty that they would participate in Russian oil purchases and increase imports of US oil before completing the trade agreement between two nations.
The US has impressive 25% tariff to India for the purchase of Russian oil, which came into force on August 27, while another 25% tariff to India, selected as mutual measures, is valid from August 7. Currently, India is facing the highest US tariff 50%, which is equal to Brazil, while all other American business partners are subject to lower tariffs.
Indian exports to the US, its largest business partner, fell by 22.2% of $ 8.8 billion to $ 6.9 billion from May to August 2025, according to the new report by Global Trade Research Initiative (GTRI). American tariffs to Indian goods increased from 10% at the beginning of August to 25% from August 7 and finally a record 50% until the end of the month.
“It is essential to stabilize exports, protect market market share in the US and protect jobs in key sectors such as textiles, gems and jewelry, seafood and pharmacies. If immediate steps were carried out, permanent obstacles in Indian export growth could be caused.”
Diversification
In order to reduce the impact of US tariffs on exports produced, Indian exporters diversify their goods on various markets such as China, Sae, Netherlands, Singapore, Hong Kong and Australia.
According to trading data of the Ministry of Trade for August 2025, exports to China climbed to 22.4% to $ 1.22 billion, while shipments to the Netherlands increased by 17.9% to $ 1.83 billion. SAE imported goods worth $ 3.35 billion from India, which meant an annual increase of $ 23.4% and exports to Hong Kong increased by 62.5% to $ 584.7 million.
Other remarkable profits came from Italy, which imported Indian goods worth $ 631.2 million, which is 15.7%. Exports also increased to South Africa ($ 654.1 million, by 19.7%), Nepal ($ 617.3 million, by 14.4%) and Bangladesh ($ 874.6 million, by $ 16.2%).
(Tagstotranslate) bilateral trade agreement
