Modi and Trump Aim for $500 Billion in Bilateral Trade by 2030

In a significant move to boost economic ties between the two nations, Indian Prime Minister Narendra Modi and US President Donald Trump have set an ambitious target of achieving $500 billion in bilateral trade by 2030. This announcement comes as the two leaders met at the White House on Thursday, marking a new chapter in the US-India trade relationship.

The current bilateral trade between the US and India stands at a record $129.2 billion in 2024, with the US being India's largest trading partner and India ranking tenth in the list of US trading partners. However, the trade deficit between the two countries has been widening, with the US importing $45.7 billion more from India than it exported there in 2024.

To address this imbalance and foster a more balanced trade relationship, both leaders have agreed to work towards reducing tariffs and non-tariff barriers. Trump has been vocal about India's penchant for tariffs, but there have been signs that India is open to cooling on levies. Earlier this month, India's finance minister slashed the import duty on motorcycles, a move benefiting American bike company Harley Davidson.

The US counts pearls, semi-precious stones, pharmaceutical products, and electrical equipment among its top imports from India. In 2023, imports of the top five products going from India to the US totaled more than $47 billion. Modi is visiting Washington this week, and the two leaders spoke on the phone on January 27, seven days after Trump's inauguration, where they discussed expanding cooperation, security in the Indo-Pacific, and the importance of India buying more US-made security equipment.



The India-US trade relationship has seen several milestones in recent years, including the initiation of strategic dialogues in 2005, the US designating India as a "Major Defense Partner" in 2016, and the signing of several vital agreements such as LEMOA, COMCASA, BECA, and GSOMIA. In 2018, India received Strategic Trade Authorization Tier 1 (STA-1) status for easier access to US military technology, and the two countries established the 2+2 Ministerial Dialogue to deepen strategic cooperation.

As the two nations work towards achieving the targeted $500 billion in bilateral trade by 2030, they will need to address several challenges and opportunities. These include reducing tariffs and non-tariff barriers, promoting investment in each other's countries, and encouraging market access for smaller players. By working together and fostering a more balanced trade relationship, the US and India can achieve this ambitious goal and strengthen their economic ties.

In conclusion, the US and India have set an ambitious target of achieving $500 billion in bilateral trade by 2030. To reach this goal, both nations must work together to reduce tariffs and non-tariff barriers, promote investment, and encourage market access. With a strong commitment to cooperation and a focus on mutual benefits, the US and India can achieve this target and strengthen their economic ties.