By Anjali Sharma
WASHINGTON Prime Minister Narendra Modi and US President Donald Trump on Friday 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.
Misri addressed a press briefing 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 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.
Two leaders acknowledged that this level of ambition would require new and fair trade terms.
They announced plans to negotiate the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement by the fall of 2025.
Both leaders 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.
Trump 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.
Two sides will also work together to increase trade in agricultural goods.
The leaders committed to designate senior representatives to advance these negotiations and to ensure that the trade relationship fully reflects the aspirations of the COMPACT.
The leaders welcomed early steps to demonstrate a mutual commitment to address bilateral trade barriers. The United States welcomed India’s recent measures to lower tariffs on U.S. products of interest in the areas of bourbon, motorcycles, ICT products and metals, as well as measures to enhance market access for U.S. agricultural products, like alfalfa hay and duck meat, and medical devices.
Both sides also pledged to collaborate to enhance bilateral trade by increasing U.S. exports of industrial goods to India and Indian exports of labour-intensive manufactured products to the United States.
The two sides will work together to increase trade in agricultural goods, the statement read.
Leaders welcomed ongoing investments by Indian companies worth approximately USD 7.35 billion, such as those by Hindalco’s Novelis in finished aluminium goods at their state-of-the-art facilities in Alabama and Kentucky; JSW in steel manufacturing operations at Texas and Ohio; Epsilon Advanced Materials in the manufacture of critical battery materials in North Carolina; and Jubilant Pharma in the manufacture of injectable in Washington. These investments support over 3,000 high-quality jobs for local families, added the statement.
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