Washington, Feb 14 (PTI) India and the US have resolved to more than double the two-way trade to USD 500 billion by 2030 and begin talks for a bilateral trade agreement with a view to bring down duties and increase market access.

According to the joint statement issued after the meeting of Prime Minister Narendra Modi and US President Donald Trump here, the two leaders have also pledged the bilateral trade relationship to promote growth that ensures fairness, national security and job creation.

"To this end, the leaders set a bold new goal for bilateral trade – Mission 500 – aiming to more than double total bilateral trade to USD 500 billion by 2030. Recognizing that this level of ambition would require new, fair-trade terms, the leaders announced plans to negotiate the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall of 2025," it said.

The statement further said that both sides committed to designate senior representatives to advance these negotiations and to ensure that the trade relationship fully reflects the aspirations of the COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology).

"To advance this innovative, wide-ranging BTA, the US and India will take an integrated approach to strengthen and deepen bilateral trade across the goods and services sector, and will work towards increasing market access, reducing tariff and non-tariff barriers, and deepening supply chain integration," it added.

Normally in a free trade agreement, two trading partners either eliminate or significantly reduce customs duties on maximum number of goods traded between them. Besides, they also ease norms to promote trade in services and boost investments.

During the first term of President Donald Trump, India and the US had discussed a mini-trade deal, but was shelved by the Joe Biden administration as they were not in favour of a free trade agreement.

The leaders also welcomed early steps to demonstrate mutual commitment to address bilateral trade barriers.

In 2023, the US and India bilateral trade in goods and services stood at USD 190.08 billion (USD 123.89 goods and USD 66.19 services trade). In that year, India's merchandise exports to the US stood at USD 83.77 billion, while imports were USD 40.12 billion, leaving a trade gap of USD 43.65 billion in favour of India.

The country's services exports to America was USD 36.33 billion in 2023, while imports were aggregated at USD 29.86 billion. The trade gap (difference between imports and exports) was USD 6.47 billion in favour of New Delhi.

Further, the statement said that the US hailed India's recent measures to lower tariffs on American products of interest in the areas of bourbon, motorcycles, ICT (Information and Communications Technology) products and metals, as well as measures to enhance market access for US agricultural products, like alfalfa hay and duck meat, and medical devices.

"India also expressed appreciation for US measures taken to enhance exports of Indian mangoes and pomegranates to the US," it said, adding the two countries pledged to collaborate to enhance bilateral trade by increasing US exports of industrial goods to India and Indian exports of labour-intensive manufactured products to America.

The two sides will also work together to increase trade in agricultural goods.

It added the two leaders agreed to drive opportunities for companies of the two countries to make greenfield investments in high-value industries.

They welcomed ongoing investments by Indian companies worth about USD 7.35 billion, such as those by Hindalco's Novelis in finished aluminum goods at their state-of-the art facilities in Alabama and Kentucky; JSW in steel manufacturing operations at Texas and Ohio; Epsilon Advanced Materials in the manufacturing of critical battery materials in North Carolina; and Jubilant Pharma in the manufacturing of injectables in Washington.

These investments support over 3,000 high-quality jobs for local families, the statement said.

The Modi-Trump meeting came hours after the US president announced a new reciprocal tariff policy to match higher duties charged by all its trading partners.

At a joint media briefing with Modi, Trump announced that he and Modi agreed on a deal that would facilitate India to import more US oil and gas to bring down Washington's trade deficit.

In his remarks to the press, Trump called import duties imposed by India on certain US products "very unfair" and "strong".

While announcing the new tariff policy, the president also spoke about how India is "right at the top of the pack" when it comes to tariffs. Earlier also, he has termed India as "tariff abuser" and "tariff king".

The bilateral trade between India and the US was around USD 130 billion last year and the trade gap stands at around USD 45 billion in New Delhi's favour.

In 2024, India's main exports to the US included drug formulations, biological (USD 8.1 billion), telecom instruments (USD 6.5 billion), precious and semi-precious stones (USD 5.3 billion), petroleum products (USD 4.1 billion), gold and other precious metal jewellery (USD 3.2 billion), ready-made garments of cotton including accessories (USD 2.8 billion), and products of iron and steel (USD 2.7 billion).

Imports included crude oil (USD 4.5 billion), petroleum products (USD 3.6 billion), coal, coke (USD 3.4 billion), cut and polished diamonds (USD 2.6 billion), electric machinery (USD 1.4 billion), aircrafts, space crafts and parts (USD 1.3 billion), and gold (USD 1.3 billion). PTI MPB RR CS HVA