Trade discussions with U.S. ‘positive’, says official

Sub : IR

Sec: Indian and world

Context:

India and the U.S. are actively working to boost bilateral trade, with ongoing efforts from both sides to increase commerce between the two countries.
Commerce Minister Piyush Goyal visited the U.S. between March 4 and 6, where he held positive talks with U.S. Trade Representative Jamieson Greer and U.S. Commerce Secretary Howard Lutnick.
One of the main initiatives driving the engagement is “Mission 500,” which aims to increase the bilateral trade from $200 billion to $500 billion.

Mission 500: Long-term Goals

”Mission 500″ is an ambitious initiative launched by Indian Prime Minister Narendra Modi and U.S. President Donald Trump during their meeting in Washington, aiming to more than double bilateral trade between the two countries to $500 billion by 2030.
This initiative is supported by ongoing negotiations for a multi-sectoral bilateral trade agreement between the two countries.
To achieve this goal, both nations have agreed to negotiate a comprehensive Bilateral Trade Agreement (BTA), with the first phase expected to be finalized by fall 2025.
The BTA will address various sectors, including reducing tariffs, enhancing market access, and resolving existing trade disputes.
In addition to trade, the leaders have emphasized collaboration in critical and emerging technologies such as artificial intelligence, quantum computing, semiconductors, and wireless telecommunication.
This includes establishing semiconductor fabrication facilities in India to meet national security needs and promote technological advancement.

India-US trade:

In 2023, the total bilateral trade between India and the U.S. reached $190.08 billion, making the U.S. India’s largest trading partner, with India’s merchandise exports to the U.S. valued at $83.77 billion.
In February 2025, India’s merchandise trade deficit narrowed to $14.05 billion, the lowest in over three years.

Scheme to Promote Electric Passenger Cars (SPMEPC):

India’s government introduced the SPMEPC scheme in March 2024 to encourage the manufacturing of electric passenger cars.
Under this scheme, manufacturers that set up production facilities in India will benefit from a reduced customs duty of 15% instead of the standard 70%.
To qualify for the reduced duty, manufacturers must meet specific criteria, including achieving a minimum domestic value addition of 25% by the third year and 50% by the fifth year.

U.S. Tariffs and Trade Tensions:

U.S. President Donald Trump has raised concerns about India’s high tariffs, particularly on automobiles, and threatened to impose reciprocal tariffs starting April 2.
These tensions were discussed during Prime Minister Narendra Modi’s recent visit to the U.S., with Trump expressing dissatisfaction over India’s trade policies and both nations agreed to continue working towards resolving the issue and reaching a fair-trade deal.