Union Minister of Commerce and Industry Piyush Goyal. File.
| Photo Credit: PTI

The announcement to negotiate a bilateral trade agreement between India and the U.S. has boosted business confidence in both countries, as it can help further strengthen economic ties by leveraging their competitive strengths, Commerce and Industry Minister Piyush Goyal said on Sunday (February 16, 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.

“The Prime Minister has brought back with him an agreement or an understanding to enter into a trade deal by fall of this year. I think, it gives a lot of confidence and a lot of relief to every business person in the US and in India who believe that together, we can truly transform world trade, together with our competitive strengths in different areas, we can truly work as two friends, as two partners for progress and prosperity,” Mr. Goyal said.

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 also 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.

The Commerce Minister also said that India is expanding and forging new partnerships across the world with new trade agreements with the developed world including with Australia, the UAE, and EFTA bloc.

The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.

“The progress we are making in other engagements with Europe, and the progress we will soon make with the US as we proceed to finalize a trade deal by fall of this year, are all reflective of India’s growing relevance at the global stage,” he said at the ET Now Global Business Summit here.

In 2023, the U.S. and India bilateral trade in goods and services stood at $190.08 billion ($123.89 billion goods and $66.19 billion services trade). In that year, India’s merchandise exports to the U.S. 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.

Further, he said that the Government is taking a series of steps to boost domestic manufacturing.

“The Make in India story is now going to be led by a National Manufacturing mission, which will come up with newer ideas and address the challenges that manufacturing in India faces (by) MSMEs or otherwise, and ensure that making in India becomes more competitive,” he added.

Courtroom artist’s drawing Tahawwur Rana. File
| Photo Credit: AP

U.S. President Donald Trump has announced that his administration has approved the extradition of “very evil” Tahawwur Rana, wanted by Indian probe agencies for his role in the 26/11 Mumbai terror attacks, “to face justice in India”.

Also Read | PM Narendra Modi U.S. visit LIVE

Rana, a Canadian national of Pakistani origin, is currently lodged at a metropolitan detention centre in Los Angeles. He is known to be associated with Pakistani-American terrorist David Coleman Headley, one of the main conspirators of the 26/11 attacks.

Speaking at a joint press meet along with Prime Minister Narendra Modi, who is on a U.S. visit, President Donald Trump on Thursday (February 13, 2025) said, “Today I am pleased to announce that my administration has approved the extradition of one of the plotters and very evil people of the world, and having to do with the horrific Mumbai terrorist attack, to face justice in India. So, he is going back to India to face justice.”

The extradition of Rana was cleared by the U.S. Supreme Court in January as it rejected his review petition in the case. India last month said it was working with American authorities for the early extradition of Rana.

“The US Supreme Court on January 21 declined to hear a petition from the accused. We are now working with the US side on procedural issues for early extradition to India of the accused in the Mumbai terror attack,” External Affairs Ministry spokesperson Randhir Jaiswal had said.

On November 26, 2008, a group of 10 Pakistani terrorists went into a rampage, carrying out a coordinated attack on a railway station, two luxury hotels and a Jewish centre, after they sneaked into India’s financial capital using the sea route in the Arabian sea.

Prime Minister Narendra Modi has arrived in Washington DC Thursday (local time) for a bilateral meeting with President Donald Trump. PM Modi’s visit to the White House, scheduled for February 12-13, marks the fourth week of Trump’s second term in office.

The meeting between the two leaders comes amid heightened tensions surrounding Trump’s trade tariffs on several countries, his controversial Gaza peace plan, and his ongoing mass deportation of illegal immigrants. These issues are likely to feature prominently in their discussions as both leaders seek to strengthen bilateral ties.

PM Modi will be the fourth global leader to meet Trump at the White House since his inauguration on January 20.

The US president has already hosted Israel’s Prime Minister Benjamin Netanyahu, Japan’s Prime Minister Shigeru Ishiba, and Jordan’s King Abdullah during the early weeks of his second presidency.

During his visit, PM Modi is also expected to meet with Elon Musk in Washington. Reports indicate that the two leaders may discuss Starlink’s delayed plans to launch satellite broadband services in India.

Here are the Live Updates on PM Modi’s US visit: