India should pursue services-oriented trade deal with US, says NITI report

US President Donald Trump and Prime Minister Narendra Modi

India should pursue a services-oriented trade deal with the United States, placing strong emphasis on key sectors such as information technology, financial services, professional services, and education, a report published by NITI Aayog said on July 14.

"The agreement should include robust provisions for digital trade, creating a framework for enhanced cross-border service delivery," the report said, adding that it should build on the model of the India–UK trade deal.

India and the US are simultaneously negotiating a scaled-down version of the first tranche of a Bilateral Trade Agreement (BTA). America's country-specific reciprocal tariffs are expected to kick in from August 1.

A delegation from India’s commerce ministry has reached Washington for another round of talks for the trade deal with the US, starting July 14.

India must advocate for improved visa access for its professionals, particularly under the H-1B and L-1 categories, the NITI Aayog report said. This should include provisions for intra-corporate transferees and independent service providers, which are crucial for maintaining the South Asian nation's competitive edge in the global services industry, the report said.

India and the US in February set a new goal – "Mission 500” – aiming to more than double total bilateral trade to $500 billion by 2030.

The report named Trade Watch Quarterly for October-December (Q3) FY25, published by NITI Aayog, has taken into account the tariffs imposed by the US on various nations, including Canada and Mexico till July 10, 2025.

The think-tank in the report also recommended that India should fast-track talks for free trade agreements, particularly with the European Union, with a clear, time-bound negotiation roadmap. This, in a bid to diversify its trade partners and to become integral to larger global supply chains,

"Simultaneously, deeper trade engagement with countries such as Australia, Japan, South Korea, and ASEAN nations can be highly beneficial, especially in sectors where India’s export strengths, such as pharmaceuticals, automobiles, and IT, match their import needs," the report added.

It also batted for pivoting towards African markets by developing a structured India-Africa trade corridor focused on pharmaceuticals, education services, and IT.