India is preparing to engage in discussions with the United States on a significant trade agreement that Commerce and Industry Minister Piyush Goyal has referred to as the “mother of all deals.” This prospective bilateral trade pact is expected to strengthen economic relations between the two nations and unlock substantial opportunities in an increasingly uncertain global economy.
Speaking at the Invest Kerala Global Summit, Goyal confirmed that India will soon begin formal negotiations with the U.S. to establish a comprehensive economic partnership. “We will soon initiate talks with the Donald Trump administration on a robust and all-encompassing economic agreement,” he stated.
A Strategic Economic Partnership
Goyal emphasized that the proposed trade deal would allow both countries to leverage their respective strengths and work together effectively amid ongoing global challenges.
Earlier this week, he suggested that India and the U.S. could consider lowering tariffs and making other trade concessions as part of the deal. However, the final framework—whether it will encompass goods, services, and investments similar to a Free Trade Agreement (FTA)—will be determined through mutual negotiations.
His comments come a day after former U.S. President Donald Trump signaled the possibility of imposing “reciprocal tariffs” on India. During Prime Minister Narendra Modi’s recent visit to Washington, both nations committed to concluding the first phase of their Bilateral Trade Agreement (BTA) within the next eight to nine months. The overarching goal is to boost bilateral trade from the current $200 billion to $500 billion by 2030.
Expanding Trade Ties Beyond the U.S.
In addition to the U.S., India is actively negotiating trade agreements with several other countries. At the summit, Goyal highlighted ongoing discussions with the European Union (EU), the United Kingdom (UK), and Oman. He further noted that India is exploring the possibility of a Free Trade Agreement (FTA) with Bahrain, modeled after its Comprehensive Economic Partnership Agreement (CEPA) with the UAE. “We are optimistic about launching negotiations soon,” he added.
India’s Economic Growth and Investment Potential
Goyal projected that India’s economy, currently valued at $4 trillion, is on course to expand to $30-32 trillion by 2047, offering lucrative investment prospects. Illustrating India’s investment potential, he cited the example of an automobile manufacturer that, after investing $200 million in 1999, has since repatriated $12 billion in royalties and dividends while maintaining an equity valuation of $12-13 billion.
“This is just one of many success stories showcasing India’s vast opportunities for investors worldwide,” Goyal remarked.
With 1.4 billion consumers, India provides a thriving market for businesses and investments. Goyal urged global investors to capitalize on India’s growth potential, particularly in emerging sectors such as services, technology, data centers, artificial intelligence, and machine learning.
The proposed India-US trade pact is a game-changer, fostering technological collaboration, investment, and economic growth. Strengthening bilateral ties will unlock immense opportunities for AI, automation, and innovation-driven industries, ensuring both nations lead the global digital and industrial transformation, Rajkumar Sharma, President AICRA commented on this potential trade deal.
Ambitious Export Growth Targets
India is on track to achieve $800 billion in total exports this year, with aspirations to reach $2 trillion within the next five to six years. Goyal highlighted key growth areas, including food processing, renewable energy, logistics, infrastructure, and tourism, encouraging investors to seize these opportunities.
“There is immense potential across multiple sectors. I urge global investors not to miss this opportunity,” he concluded.
