In a significant development, Prime Minister Narendra Modi and US Vice President JD Vance have announced the finalization of Terms of Reference (TOR) for the much-anticipated India-US Bilateral Trade Agreement (BTA). The announcement was made during their meeting at 7 Lok Kalyan Marg, New Delhi, marking a critical step forward in strengthening economic ties between the two nations.
Key Highlights of the Agreement
- The TOR establishes a roadmap for multi-sector trade negotiations, focusing on reciprocal trade benefits.
- The agreement aims to reduce tariff and non-tariff barriers, enhance market access, and address regulatory challenges.
- Both nations are committed to achieving initial outcomes within 2025, showcasing mutual trust and cooperation.
Statements from Leaders
Prime Minister Modi emphasized the importance of the agreement, stating, “India and the US are setting a defining partnership for the 21st century, focusing on trade, technology, and people-to-people exchanges.” Vice President Vance echoed this sentiment, calling Modi a “great leader” and highlighting the transformative potential of the BTA.
Economic and Geopolitical Implications
The BTA is expected to:
- Boost bilateral trade volumes, addressing the $45.7 billion trade deficit the US reported with India in 2024.
- Open new opportunities for workers, farmers, and entrepreneurs in both countries.
- Strengthen the India-US Comprehensive Global Strategic Partnership, aligning with shared economic and geopolitical priorities.
This announcement follows months of negotiations, including tariff reductions by India on American goods, signaling a collaborative approach to resolving trade barriers.
