India-U.S. Push for Trade Agreement Gains Momentum

India's trade minister Piyush Goyal is set to lead a delegation to the U.S. to advance trade negotiations, following Vice President JD Vance's visit to India. The goal is to secure a trade deal by the 90-day tariff pause announced by Trump, with a future target of $500 billion in trade by 2030.

India's trade minister, Piyush Goyal, is preparing to head a delegation to the United States starting May 16 to further ongoing trade negotiations. This diplomatic initiative follows a recent visit to New Delhi by U.S. Vice President JD Vance, reflecting renewed efforts from both nations to establish a bilateral trade pact.

According to government sources, the move comes amidst a 90-day suspension on proposed U.S. tariff hikes, including a significant 26% tariff that impacts India. During this pause, a base 10% tariff remains in effect. The trade relationship with the U.S. is crucial for India, as it represents the country's largest trading partner, accounting for bilateral trade worth approximately $129 billion in 2024.

Chief negotiator Rajesh Agrawal and senior officials will accompany Minister Goyal. The goal is to negotiate a deal by the fall of 2025 with plans to expand bilateral trade to $500 billion by 2030, following groundwork laid during Prime Minister Narendra Modi's visit to the U.S. earlier this year.