India is stepping up efforts to secure a bilateral trade agreement (BTA) with the United States, projecting itself as a lucrative and strategic economic partner. At a joint conference with Italy's Deputy Prime Minister Antonio Tajani, Commerce and Industry Minister Piyush Goyal highlighted India's growing economy, demographic advantage, and aspirational consumer base as key factors to drive trade negotiations with the US.

India’s Pitch to the United States

Goyal emphasised that India, with its young and rapidly growing population, is poised to be a major global consumer market in the next 25–30 years. This, according to him, makes India an ideal partner for the US in formulating a forward-looking trade agreement.

“Looking at the growth India offers in the next 25–30 years, with a large, aspirational, young population who will add to the demand for goods and services, we believe India will be a compelling case to enter into a good agreement with the US,” said Goyal.

The proposal comes at a strategic moment, following the 90-day tariff pause declared by former US President Donald Trump, aimed at creating a temporary window to negotiate trade terms and avoid the imposition of reciprocal duties.

Mission 500: Doubling Trade by 2030

India and the US are currently in discussions over a bilateral trade agreement (BTA) as part of Mission 500, which envisions doubling bilateral trade to $500 billion by 2030.

Goyal noted that India was among the first countries to initiate formal dialogue with the US to reach a mutually beneficial agreement. He asserted that the two economies complement each other, and such collaboration could serve broader global economic interests.

“We are already in dialogue with the US to come to a BTA, which will be in the mutual interest of expanding business between India and the US,” he added.

Strengthening India-EU Trade Cooperation

Apart from discussions with the US, Goyal also addressed ongoing negotiations with the European Union (EU). India and the EU are actively working towards finalising a long-pending free trade agreement (FTA) that was re-launched in June 2022.

Despite sensitive issues remaining, Goyal expressed optimism, saying:

“Things are progressing well on India-EU FTA. If there were no sensitive issues, we could have concluded it 18 years ago. Obviously, there are issues, and we are working towards resolving them.”

The latest goal is to conclude the trade deal by the end of 2025, offering a solid framework to reduce trade barriers and boost cooperation with the EU.

Italy’s Support for India’s Global Trade Initiatives

Tajani, representing Italy—a key EU member—extended strong support for India’s FTA with the EU. He highlighted that Italy is not only ready to reduce trade barriers but is also committed to strengthening business ties with India.

“India and we are working well, we want to do more. We also want to reduce our barriers, and we are doing our best for better cooperation between Indian and Italian businesses,” Tajani said.

Global Context: US, China, and Tariff Diplomacy

The Goyal-Tajani conference occurred amid rising trade tensions between the US and China. Trump’s decision to pause reciprocal tariffs for 90 days created global ripples. Tajani commented on the situation, backing a “zero-for-zero” tariff approach and encouraging restraint.

“We are against new tariffs. It is a mistake to put new tariffs against our brothers. The goal is to get zero to zero,” Tajani said.

China, in retaliation to Trump’s move to raise US tariffs on Chinese imports to 145%, has hiked its own tariffs to 125% from 84% on select American goods. Goyal and Tajani, however, declined to comment on the escalating US-China tariff war, stating that it is a matter between those two nations.

India's Growing Influence in Global Trade

India's current strategy, as highlighted by Goyal, involves diversifying trade partnerships, reducing dependency on select markets, and pushing for comprehensive trade agreements. This includes:

• Finalising the India-UK free trade agreement

• Advancing talks with Australia, Canada, and the Gulf Cooperation Council

• Boosting trade infrastructure and supply chain resilience

Why the India-US Trade Deal Matters

A bilateral trade agreement between India and the US is expected to:

• Lower tariffs and facilitate smoother trade for both goods and services

• Enhance technology transfer and investments

• Support India’s integration into global value chains

• Promote job creation and manufacturing in India through Make in India initiatives

• Build resilience against supply chain disruptions stemming from geopolitical tensions

With India targeting a $500 billion trade relationship by 2030, a BTA with the US is not just a diplomatic move—it’s an economic necessity.

What’s Next for India’s Trade Diplomacy?

The next few months are critical. With the US tariff pause lasting 90 days, and the India-EU FTA negotiations aiming for a 2025 closure, New Delhi is positioned at the center of key global trade alignments.

India’s ability to maintain momentum in these discussions could determine how successfully it balances global partnerships, counters protectionist threats, and secures long-term economic growth.

Conclusion

India’s assertive approach, supported by demographic strengths and economic ambition, makes it a promising partner in the evolving global trade order. As the world navigates tariff wars and realignment of trade partnerships, India's role is only set to grow.

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