India will soon start discussing a trade pact with the US that will potentially be the “mother of all deals”, commerce and industry minister Piyush Goyal said on Friday.
“We will soon begin discussions with the Donald Trump administration on a strong and comprehensive economic partnership, and a bilateral trade deal,” he said at the Invest Kerala Global Summit.
Goyal added that the trade deal will provide huge opportunities for both the nations to work together and complement each other’s strengths in a very turbulent world.
Earlier this week, the minister indicated that India and the US could explore tariff reductions and other concessions under the proposed trade deal. However, he added that the scope of the agreement—whether it will cover goods, services and investments like a full-fledged free trade agreement (FTA)—would be determined during negotiations between the two sides.
Goyal’s latest remarks come a day after Trump warned of imposing “reciprocal tariffs” on India. During Prime Minister Narendra Modi’s recent visit to Washington, India and the US agreed to finalise the first phase of the multi-sector bilateral trade agreement (BTA) within the next eight to nine months. The BTA aims to increase bilateral trade to $500 billion by 2030, up from the current $200 billion.
At the Kerala investor summit, Goyal also highlighted ongoing trade discussions with the EU, the UK and Oman. “We are in talks with Bahrain to establish an FTA similar to a Comprehensive Economic Partnership Agreement (CEPA), and we hope to begin the process soon,” he said.
Goyal said India’s economy is on track to grow from $4 trillion to $30-32 trillion by 2047 and urged global investors to seize the opportunity. Giving an example, Goyal said an automobile manufacturer that invested $200 million in 1999 has repatriated $12 billion in royalties and dividends over the past decade, in addition to $12-13 billion in current equity valuation. “This is just one example of what India can offer to both investors and for those around the world,” Goyal said
With a consumer base of 1.4 billion people, India presents a massive business and growth opportunity, Goyal said, encouraging investments in the services sector, technology, data centres, machine learning and artificial intelligence.
He also noted that India is on track to close $800 billion in exports this year, with aspirations to reach $2 trillion in exports over the next five to six years. “There is immense potential in food processing, renewable energy, logistics, infrastructure and tourism. I urge investors worldwide not to miss the bus,” he said.