India and the US are set to sign a bilateral trade agreement (BTA) by the end of 2025, with a target of doubling bilateral trade to $500 billion by 2030. The agreement aims to address long-standing trade disparities, focusing on tariffs and market access, though challenges remain regarding India’s high tariff rates and the US’s market access concerns.

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• India and the US announced plans to sign a bilateral trade agreement by the end of 2025.
• The goal is to double bilateral trade to $500 billion by 2030.
• US President Donald Trump and Prime Minister Modi aim to resolve long-running trade disparities.
• India recently reduced tariffs on US products, including motorcycles, agricultural goods, and medical devices.
• A key issue in negotiations is India’s high tariffs, such as 100% on US motorcycles and 39% on agricultural goods.
• The US has a significant trade deficit with India, nearly $100 billion, with India having a $35 billion surplus in goods trade.
• Trump and Modi agreed to negotiate tariff reductions to create a more level playing field in trade.
• Experts suggest that India may need to lower tariffs further to secure better market access for US goods.
• The previous attempt to negotiate a trade deal during Trump’s first term faced challenges due to the lack of mutual concessions.
• The US has concerns about India’s tariff policies, which are seen as higher compared to other countries with trade agreements.