India offers US a compelling case for a trade deal, says Piyush Goyal

Union Minister of Commerce & Industry Piyush Goyal

India presents a compelling case to the United States (US) for a bilateral trade deal, given the outlook on growth and demography, commerce minister Piyush Goyal said on April 11.

The minister’s comments come as countries scramble to make the most of the 90-day tariff pause called by US President Donald Trump for an arrangement to avoid the so-called reciprocal duties.

"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," Goyal said while addressing a joint conference with Italy's deputy prime minister Antonio Tajani in New Delhi.

India and the US are discussing the contours of a bilateral trade agreement (BTA), which is part of a new goal—"Mission 500”—aiming to more than double trade between the two countries to $500 billion by 2030.

"We are among the first countries to engage with the US. 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,” Goyal said, adding the two sides complement each other and can work together for global good.

On the proposed free trade deal between India and European Union (EU), Goyal said the two sides are working towards resolving differences over trade barriers.

"Things are progressive well on India-EU FTA. If there were no sensitive issues, we could have concluded the (free trade agreement) 18 years ago, obviously there are issues and we are working towards resolving them," the minister said.

Italy supports the FTA between India and EU and is working towards reducing trade barriers, Tajani, whose country is a leading member of the 27-nation bloc, said.

"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.

In February, India and EU agreed to ramp-up talks for the trade deal and close it by 2025-end to tide over impending troubles from tariffs.

Negotiations for the proposed trade deal were re-launched in June 2022.

"We are working together to make India, EU FTA a reality by the end of the year," Goyal said.

On Trump's decision to pause reciprocal tariffs, Tajani said Italy supports a zero-for-zero duty policy and is working towards brokering a trade deal between the US and the EU.

"We have to wait for 90 days to see how Trump's tariff plays out. I wish there are no tariffs to spur business between both countries but we have to wait and see what they will propose in coming days," he said.

Both Goyal and Tajani refused to comment on China's move to impose retaliatory tariffs on the US after Trump effectively raised to 145 percent the levy on Chinese imports.

"We are against new tariffs. It is a mistake to put new tariffs against our brothers. The goal is to get zero to zero. The China issue is a problem between the US and China," Tajani said.

China has raised its tariffs on US goods to 125 percent from 84 percent following Trump's move to raise the duties to 145 percent.