India is intensifying efforts to enhance its trade relationship with the United States, aiming to significantly boost bilateral commerce. The two nations have agreed on a framework for the initial phase of a comprehensive trade agreement, with the goal of increasing two-way trade to $500 billion by 2030.

Indian Trade Secretary Sunil Barthwal announced that both countries have signed the terms of reference for the first stage of the trade pact. Virtual discussions are set to commence this month, followed by in-person negotiations scheduled for mid-May.

As part of the proposed agreement, India is considering substantial reductions in import duties on a significant portion of U.S. goods, marking one of its most significant trade policy shifts in recent years. This initiative aligns with a temporary 90-day suspension of increased import levies by the U.S. administration for key trading partners, including India, providing a window for constructive dialogue.

Despite these positive developments, U.S. President Donald Trump has expressed concerns over India's trade practices, referring to the country as a "tariff abuser." In response, India has taken steps to address these concerns, including commitments to increase purchases of American defense and energy products.

The United States currently experiences a trade deficit of approximately $45.6 billion with India. The forthcoming trade agreement aims to address this imbalance by enhancing market access and reducing trade barriers for both nations.

This renewed focus on strengthening economic ties follows a recent meeting between Prime Minister Narendra Modi and President Trump in Washington, signaling a mutual commitment to resolving longstanding trade issues and fostering a more robust economic partnership.