Trade Deal with U.S. Could Boost Indian Exports: Finance Ministry
New Delhi, May 28 — A potential trade agreement between India and the United States could provide a significant boost to Indian exports and open up new market opportunities, the Finance Ministry said in its monthly economic review released on Tuesday.
The ministry noted that such a deal could help counter current global trade headwinds and act as a catalyst for India’s export growth. The comments come on the heels of Commerce and Industry Minister Piyush Goyal’s recent visit to Washington, where both sides are working toward finalising an interim trade agreement by early July.
India is hoping to conclude the agreement within the 90-day window of tariff reprieve announced by U.S. President Joe Biden on April 9. The proposed U.S. tariffs, including a 26% duty on Indian imports, have been temporarily paused, offering a strategic opportunity for negotiations.
The United States remains India’s largest trading partner, with bilateral trade reaching $129 billion in 2024 and a trade surplus of $45.7 billion in India’s favour.
Economic Outlook Remains Positive
The ministry also expressed optimism about India’s economic trajectory, citing strong government capital expenditure, recent personal income tax cuts, and a dovish shift in monetary policy as key drivers of growth. It projected GDP growth for FY2024–25 to be toward the upper end of its forecast range of 6.3% to 6.8%.
“Domestic demand is expected to remain robust, supported by fiscal and monetary measures, which in turn should strengthen private investment,” the report said.
Other highlights of the review include:
Continued stability of the Indian rupee and comfortable levels of foreign exchange reserves.
Positive investor sentiment toward India amid global economic uncertainties.
Signs of recovery in rural demand and manufacturing activity.
The Finance Ministry concluded that India is well-positioned to sustain its growth momentum and remains an attractive destination for global capital.
