Prime Minister Narendra Modi and US President Donald Trump have launched “Mission-500” in the trade and investment sector. The initiative aims to more than double two-way trade to USD 500 billion by 2030.
According to information shared by Foreign Secretary Vikram Misri, both the leaders unveiled the US-India Compact for the 21st Century to accelerate military partnerships, commerce, and technological advancements.
Addressing a press briefing, Misri said, “The two leaders jointly launched the US-India Compact for the 21st century to catalyse opportunities in military partnership and accelerate commerce and technological advancements. In the trade and investment sector, the leaders launched Mission-500 to more than double total two-way trade to USD 500 billion by 2030.”
“The two leaders also announced plans to negotiate the first tranche of a mutually beneficial multi-sector bilateral trade agreement by the fall of 2025. Both countries will adopt an integrated approach to strengthen bilateral trade across the goods and services sector. The move reinforces a renewed commitment to make greenfield investments in high-value industries in each other’s countries.”
Misri shared that the leaders also unveiled plans to finalise a new 10-year framework for the US-India Major Defence Partnership, running from 2025 to 2035.
“The leaders announced plans to finalise a new 10-year framework for the US-India Major Defence partnership in the 21st century. This framework will run from 2025 to 2035. They also agreed to move forward on ongoing defence procurement negotiations for a number of platforms, including land and air systems and coproduction agreements. An agreement was also reached to initiate discussions on the reciprocal defence procurement agreement,” Misri said.
During the meeting, the leaders acknowledged that this level of ambition would require new and fair trade terms. They also announced plans to negotiate the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by the fall of 2025.
They committed to designate senior representatives to advance these negotiations and ensure that the trade relationship fully reflects the aspirations of the Compact.
To advance this innovative and wide-ranging BTA, the US and India will adopt an integrated approach to strengthen and deepen bilateral trade across the goods and services sector, and work towards increasing market access, reducing tariff and non-tariff barriers, and deepening supply-chain integration.
Furthermore, the US President welcomed India’s recent measures to lower tariffs on US products of interest in the areas of bourbon, motorcycles, ICT products, and metals, as well as steps to enhance market access for US agricultural products like alfalfa hay and duck meat, and medical devices.
India also expressed appreciation for US measures taken to enhance exports of Indian mangoes and pomegranates to the United States.
The two sides will also work together to increase trade in agricultural goods.