Union Minister Piyush Goyal termed the proposed bilateral trade pact between India and the US as the “mother of all deals,” for both nations to collaborate.
Speaking at the Invest Kerala Global Summit (IKGS) on Friday, the Commerce and Industry Minister expressed the central government’s full support for the event.
His comments came amid ongoing differences between the BJP-led Centre and the Left Democratic Front (LDF)-led Kerala government on various issues.
Goyal highlighted India’s Comprehensive Economic Partnership Agreement (CEPA) with the UAE, calling it the fastest-ever negotiated free trade agreement in the world.
He also expressed hope to begin the process for a CEPA with Bahrain soon and revealed that India is currently in discussions with the European Union, the UK, and Oman about potential trade deals.
“We will soon start discussing with the Trump administration of the US a strong, powerful economic engagement and a bilateral trade deal which will be the mother of all deals providing huge opportunities for Indians and Americans to work together and complement each other’s strengths in this very turbulent world,” Goyal said.
The minister encouraged investors to seize the growth opportunities in Kerala and India, advising them not to “miss the boat.”
“Those who miss the boat may be left at the shore while others will sail with tailwinds of growth, progress, and prosperity that India offers,” he added.
The summit, which expects around 3,000 participants, provided an opportunity for Goyal to express his appreciation for Kerala, calling it “God’s Own Country.”
“I will go back, so you don’t have to worry. The lotus has not yet bloomed in Kerala but very soon… That was on a lighter note, don’t take it that this is a political platform.” he said
In a recent visit to Washington, Prime Minister Narendra Modi and US leaders committed to more than doubling two-way commerce to USD 500 billion by 2030. They also announced plans to negotiate the first tranche of a mutually beneficial, multi-sector bilateral trade agreement (BTA) by the fall of 2025.
Typically in a free trade agreement, two trading partners eliminate or reduce customs duties on a wide range of goods, ease regulations to facilitate services trade, and encourage investments.
The two nations had previously discussed a mini trade deal during the first term of US President Donald Trump, but the Joe Biden administration chose to shelve it. In 2023, US-India bilateral trade in goods and services amounted to USD 190.08 billion (USD 123.89 billion in goods and USD 66.19 billion in services).
India’s merchandise exports to the US reached USD 83.77 billion, with imports at USD 40.12 billion, resulting in a trade surplus of USD 43.65 billion in favour of India.
Additionally, India’s services exports to the US totalled USD 36.33 billion, while imports were USD 29.86 billion, creating a trade surplus of USD 6.47 billion in favour of India.
From 2021 to 2024, the US has been India’s largest trading partner. The US is also one of the few countries with which India maintains a trade surplus. In the 2023-24 period, bilateral trade with the US amounted to USD 119.71 billion in goods, with India exporting USD 77.51 billion and importing USD 42.19 billion, leaving a trade surplus of USD 35.31 billion.
Over the years, India has received USD 67.8 billion in foreign direct investments from the US between April 2000 and September 2024.
