Kochi: The proposed bilateral trade pact between India and the US will be the “mother of all deals” that will provide huge opportunities for Indians and Americans to work together, Union Commerce & Industry Minister Piyush Goyal said on Friday.
Addressing the Invest Kerala Global Summit (IKGS) here, the commerce and industry minister said he has come here to express the central government’s solidarity and full support to the event.
His comments also came against the backdrop of differences between the BJP-led Centre and the Kerala government, which is headed by the Left Democratic Front (LDF), on various issues.
The minister mentioned about India’s Comprehensive Economic Partnership Agreement (CEPA) with the UAE and said it was the world’s fastest ever negotiated free trade agreement. “We hope to start the process soon for CEPA with Bahrain,” he said in the presence of ministers from Bahrain and the UAE.
According to Goyal, India is already in dialogues with the European Union, the UK and Oman for the trade deals.
“... we will soon start discussing with the Trump administration of the US a strong, powerful economic engagement and a bilateral trade deal which will be the mother of all deals providing huge opportunities for Indians and Americans to work together and complement each other’s strengths in this very turbulent world,” the minister said. Highlighting the growth opportunities in Kerala and the country, Goyal told investors not to miss the bus and with respect to the state, not to miss the boat.
“.... those who miss the boat may be left at the shore while others will sail with tailwinds of growth, progress and prosperity that India offers,” the minister said.
Around 3,000 participants are expected at the two-day summit.
Goyal said it is always a pleasure to visit God’s Own Country and in every visit, you will feel like never going back.
“I will go back, so you don’t have to worry. The lotus has not yet bloomed in Kerala but very soon... That was on a lighter note, don’t take it that this is a political platform,” Goyal, also a senior BJP leader, said.
During the recent visit of Prime Minister Narendra Modi to Washington, India and the US announced their commitment to more than double the two-way commerce to $500 billion by 2030 and negotiate the first tranche of a mutually beneficial, multi-sector bilateral trade agreement (BTA) by fall of 2025.
Normally in a free trade agreement, two trading partners either eliminate or significantly reduce customs duties on the maximum number of goods traded between them. Besides, they ease norms to promote trade in services and boost investments.
During the first term of US President Donald Trump, the two countries had discussed a mini trade deal, but it was shelved by the Joe Biden administration as they were not in favour of such pacts.
In 2023, the US-India bilateral trade in goods and services stood at $190.08 billion ($123.89 billion in goods and $66.19 billion in services trade). That year, India’s merchandise exports to the US stood at $83.77 billion, while imports were $40.12 billion, leaving a trade gap of $43.65 billion in favour of India.
The country’s services export to America was $36.33 billion in 2023, while imports were aggregated at $29.86 billion. The trade gap (difference between imports and exports) was $6.47 billion in favour of New Delhi.
During 2021-24, America was the largest trading partner of India. The US is one of the few countries with which India has a trade surplus.
In 2023-24, the US was the largest trading partner of India with $119.71 billion bilateral trade in goods ($77.51 billion worth of exports, $42.19 billion of imports, with $35.31 billion trade surplus).
India has received $67.8 billion in foreign direct investments from America during April 2000 and September 2024.