Political lobbyist Jason Miller with U.S. President Donald Trump. | Photo: Instagram/@jasonmillerindc

Union Minister of Commerce and Industry Piyush Goyal said India and the U.S. are committed to increasing bilateral trade to $500 billion and negotiating a “strong” trade agreement within the next 6-8 months. File
| Photo Credit: ANI

Piyush Goyal Goyal said once his U.S. counterpart takes charge, both countries will discuss the contours of the pact.

India and the U.S. are committed to increasing bilateral trade to $500 billion and negotiating a “strong” trade agreement within the next 6-8 months, Commerce and Industry Minister Piyush Goyal said on Tuesday (February 17, 2025).

During the recent visit of Prime Minister Narendra Modi to Washington, India and the U.S. announced to more than double the two-way commerce to $500 billion by 2030 and negotiate the first tranche of a mutually beneficial, multi-sector bilateral trade agreement (BTA) by fall of 2025.

Mr. Goyal said once his U.S. counterpart takes charge, both countries will discuss the contours of the pact.

“…In the next 6-8 months, by establishing a strong trade agreement, we are committed to increasing trade to $500 billion,” Mr. Goyal told reporters here on the sidelines of CII’s India-Qatar Business Forum meet.

He added businesses of both the countries are excited about the agreement.

When asked if the pact would have chapters related to goods, services and investments, he said, “My counterpart has not yet confirmed in the U.S…After the (confirmation), we will do talks and then only we can decide the way forward”.

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

During the first term of U.S. President Donald Trump, the two countries had discussed a mini-trade deal, but it was shelved by the Joe Biden administration as they were not in favour of such pacts.

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

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

During 2021-24, America was the largest trading partner of India. The U.S. is one of the few countries with which India has a trade surplus.

In 2023-24, the U.S. was the largest trading partner of India with $119.71 billion bilateral trade in goods ($77.51 billion worth of exports, $42.19 billion of imports and $35.31 billion trade surplus).

India received $67.8 billion in foreign direct investments from America during April 2000 and September 2024.

New Delhi:

America’s most popular bourbon whiskey, known for its hint of sweetness, has got a sweet deal in India. Hours before PM Modi held bilateral talks with US President Donald Trump, where the two leaders discussed trade and tariffs among several issues, India slashed import duty on bourbon whiskey by as much as 66.6 per cent – effectively making it one-third the cost it is currently.

In the days and weeks leading up to the key meeting between the two global leaders, India warmed up to negotiating mega trade deals with the US by announcing significant tariff cuts on several US products as a gesture of promoting trade.

The massive drop in customs duty on bourbon whiskey – from 150 per cent to 50 per cent – was notified on February 13 by the Department of Revenue. The reduction in tariffs however, is specifically for bourbon whiskey. All other imported alcoholic beverages will continue to attract 100 per cent import duty.

American bourbon whiskey accounts for as much as one-fourth or 25 per cent of all such liquor imports in India. In 2023-24, India imported bourbon whiskey worth USD 2.5 million. The major exporting countries include the US (USD 0.75 million), UAE (USD 0.54 million), Singapore (USD 0.28 million) and Italy (USD 0.23 million).

At a press briefing at the start of his meeting with Prime Minister Narendra Modi, US President Donald Trump said “Prime Minister Modi is a great leader,” adding that “We’re going to make some wonderful trade deals for India and the US.”

The two leaders held another press conference immediately after the bilateral talks where trade for high on the agenda. On being asked by a reporter about who is a tougher negotiator, Donald Trump said, “He (PM Modi) is a much tougher negotiator than me and he is a much better negotiator than me. There is not even a contest.”

In a joint statement issued by both countries, India and the US have pledged to more than double the two-way trade to USD 500 billion by 2030 and announced plans for a bilateral trade agreement with a view to bring down duties and increase market access in both nations.

WHAT IS BOURBON WHISKEY?

Bourbon is a type of American whiskey which is made from corn. It is known for its mild sweet taste. Aged in charred oak barrels, bourbon is made with at least 51 per cent corn – this is what gives it its distinct flavour. Just like how Scotch whiskey can technically only be made in Scotland, bourbon whisky also can technically be made only in the United States.

In 1964, Bourbon was recognised by the US Congress as a “distinctive product of the United States.” The largest bourbon distillers in the United States are from the states of Kentucky and Tennessee.

Major brands of bourbon whiskey which are available in India include, Jack Daniel’s, Jim Beam, Woodford Reserve, Maker’s Mark, Gentleman Jack, and Old Forester.
 

New Delhi:

America’s most popular bourbon whiskey, known for its hint of sweetness, has got a sweet deal in India. Hours before PM Modi held bilateral talks with US President Donald Trump, where the two leaders discussed trade and tariffs among several issues, India slashed import duty on bourbon whiskey by as much as 66.6 per cent – effectively making it one-third the cost it is currently.

In the days and weeks leading up to the key meeting between the two global leaders, India warmed up to negotiating mega trade deals with the US by announcing significant tariff cuts on several US products as a gesture of promoting trade.

The massive drop in customs duty on bourbon whiskey – from 150 per cent to 50 per cent – was notified on February 13 by the Department of Revenue. The reduction in tariffs however, is specifically for bourbon whiskey. All other imported alcoholic beverages will continue to attract 100 per cent import duty.

American bourbon whiskey accounts for as much as one-fourth or 25 per cent of all such liquor imports in India. In 2023-24, India imported bourbon whiskey worth USD 2.5 million. The major exporting countries include the US (USD 0.75 million), UAE (USD 0.54 million), Singapore (USD 0.28 million) and Italy (USD 0.23 million).

At a press briefing at the start of his meeting with Prime Minister Narendra Modi, US President Donald Trump said “Prime Minister Modi is a great leader,” adding that “We’re going to make some wonderful trade deals for India and the US.”

The two leaders held another press conference immediately after the bilateral talks where trade for high on the agenda. On being asked by a reporter about who is a tougher negotiator, Donald Trump said, “He (PM Modi) is a much tougher negotiator than me and he is a much better negotiator than me. There is not even a contest.”

In a joint statement issued by both countries, India and the US have pledged to more than double the two-way trade to USD 500 billion by 2030 and announced plans for a bilateral trade agreement with a view to bring down duties and increase market access in both nations.

WHAT IS BOURBON WHISKEY?

Bourbon is a type of American whiskey which is made from corn. It is known for its mild sweet taste. Aged in charred oak barrels, bourbon is made with at least 51 per cent corn – this is what gives it its distinct flavour. Just like how Scotch whiskey can technically only be made in Scotland, bourbon whisky also can technically be made only in the United States.

In 1964, Bourbon was recognised by the US Congress as a “distinctive product of the United States.” The largest bourbon distillers in the United States are from the states of Kentucky and Tennessee.

Major brands of bourbon whiskey which are available in India include, Jack Daniel’s, Jim Beam, Woodford Reserve, Maker’s Mark, Gentleman Jack, and Old Forester.
 

Union Minister for Commerce and Industry Piyush Goyal with the U.S. Secretary of Commerce, Gina Raimondo, during the India-US CEO Forum, in Washington DC, USA.
| Photo Credit: PTI

Union Commerce and Industry Minister Piyush Goyal has said that India-U.S. trade relations would not be impacted by former U.S. President and Republican presidential candidate Donald Trump proposing a  universal 20% import tariff for goods coming into the U.S., suggesting that it was campaign rhetoric.

Also read: ‘India not an ‘abuser’ of tariffs, Trump’s claims unfair,’ says think tank GTRI

 “I don’t think comments made during an election determine our relations,” Mr. Goyal said, during a press conference on Thursday evening in Washington DC towards the end of his three day visit to the U.S.

Mr Trump has proposed a universal 20% tariff on imports into the U.S., with a higher rate of 60-100% on Chinese imports.

The Modi government had had good relations with the administrations of Joe Biden, Donald Trump and Barack Obama and that things were getting progressively better, the Union Minister said.

Mr. Trump , during a campaign event on September 18, had described India as “very tough” and a  “big abuser” in the US-India trade context.

Mr. Goyal said that India looked at the U.S. as one of the “most reliable trade partners” and “outstanding” trade partner, with whom trade was expanding in every dimension.

“And we deeply value this relationship,” he said.

Defends India’s tariff regime

Mr. Goyal, defended India’s tariff regime in reference  to remarks made by  former  Trump administration US Trade Representative (USTR) Bob Lighthizer. The official had in his 2023 book praised Mr. Goyal but called India “the most protectionist country”.

Mr. Goyal responded to this on Thursday (October 3, 2024) saying that every country protects certain goods based on its national interest and based on the offensive action of certain other countries. The U.S., he said, had an import tariff rate of some 163% on peanut butter, to protect its farmers.

Mr. Goyal said that in a world of MFN (Most Favoured Nation) duties, one had to look at which countries were dumping  products in India , presumably referring to China, among  other countries.

The minister said since the MFN rate applied to all countries (i.e., the 166 countries that operate under World Trade Organisation rules), so free trade agreements were the work-around to these rates.

“The MFN rate applies to all, and some countries may find it hurting them. The best way forward is for us to do a free trade agreement, and that is what India is doing with many countries,” he said, adding that this was the only way for a country to have differential tax rates with its trade partners.

“Bob [ Lighthizer ] understands that very well,” Mr. Goyal said, adding that if India were to lower tariffs on certain goods for the benefit of the U.S, a third country might receive the benefit.