13 hours ago
Last Updated:May 27, 2025, 23:07 IST
A successful US-India trade deal could boost exports and unlock new markets, said the Finance Ministry. Trade Minister Piyush Goyal visited Washington to advance talks.
Monthly review highlights potential benefits of a US-India deal as both sides aim to conclude talks by early July. (IMAGE: REUTERS)
A successful trade agreement between India and the US could boost exports and unlock new market access, the Union Finance Ministry said in its monthly economic review on Tuesday.
“A successful US-India trade agreement could flip current headwinds into tailwinds, opening up new market access and energising exports," the report said.
Union Trade Minister Piyush Goyal visited Washington last week to advance trade talks, with both sides aiming to sign an interim agreement by early July.
New Delhi is seeking to clinch a trade deal with the U.S. within the 90-day pause on tariff hikes announced by US President Donald Trump on April 9 for major trading partners, which includes a 26% tariff on imports from India.
The US is India’s largest trading partner, with bilateral trade totalling about $129 billion in 2024. The trade balance shows that India runs a $45.7 billion surplus with the United States.
The Union Finance Ministry report also said that the government’s direct tax exemptions, fiscal measures and recent rate cuts from the central bank could accelerate the recovery and lift growth towards the upper end of forecasts of 6.3% to 6.8% in the current fiscal year.
Government capital spending is playing a “pivotal role" in supporting economic activity, and shielding the economy from global shocks, the report said, noting that personal income tax cuts and the recent rate reduction by the central bank are also expected to spur consumption and private investment.
India has the potential to remain as one of the most promising destinations for investment amid ongoing global uncertainty, it said.
The report added that the Indian rupee has remained relatively stable and that foreign exchange reserves continue to provide a cushion against external shocks.
(With inputs from Reuters)
(This story has not been edited by News18 staff and is published from a syndicated news agency feed - Agencies)Location : First Published:News business India-US Trade Deal Could Boost Exports, Says Finance Ministry Report
