While Trump Fires Salvos, India Builds: $300 Billion Trade Target With US Powers Ahead

Last Updated:August 04, 2025, 12:48 IST

Last reviewed in Feb 2025, a special report by IBEF, in partnership with PHDCCI, projected that India-US bilateral trade could touch a staggering 300 billion dollars by 2026–27.

US President Donald Trump (left), Indian PM Narendra Modi (right). (Image: PTI)

With Donald Trump, the President of the United States of America, continuing to fire salvos at India in a series of provocative Truth Social posts and also imposing tariffs through those posts, India’s official response has been measured, but not inaction. While the political rhetoric escalates, the groundwork for an ambitious economic future between the two nations was quietly laid years back. Last reviewed in February 2025, a special report by India Brand Equity Foundation (IBEF), in partnership with the PHD Chamber of Commerce and Industry (PHDCCI) projected that India-US bilateral trade could touch a staggering 300 billion dollars by 2026–27.

IBEF is a trust established by the Ministry of Commerce. The trust’s primary objective is to promote and create international awareness of the – Made in India label – in markets overseas and to facilitate dissemination of knowledge of Indian products and services. That future-focused assessment by several trade watch agencies – national and global remains on track, senior government officers, informed about the current situation, confirm.

The United States has already cemented its position as India’s largest trading partner. And behind the scenes, far from the drama of campaign rallies and Truth Social tirades, India is meticulously advancing strategic trade partnerships. According to senior officers involved in the process, the Indian government is “at it" with quiet determination. “Core national interests, particularly in agriculture, remain non-negotiable, but multiple diplomatic and business channels are open and actively engaging," said a senior officer.

“The $300 billion figure was not just aspirational fluff. It is based on strong indicators from pharma, electronics, defence tech, clean energy, and digital services, these are all sectors where India and the US complement each other," he added.

The report stated, “Rapidly expanding trade and commercial linkages between India and the US form an important component of the multi-faceted partnership between the two countries. Total bilateral trade (goods and services) between India and the US increased from US$ 20 billion in 2000 to US$ 118 billion in 2024."

“The US emerged as India’s biggest trading partner in 2022-23 on account of increasing economic ties between the two countries. According to the provisional data of the Commerce Ministry, the bilateral trade between India and the US increased by 7.65 per cent to US$ 128.55 in 2022-23 as against US$ 119.48 billion in 2021-22," it further added.

It further said, “Many US companies view India as a critical market and have expanded their operations. Many Indian companies are investing in the US and adding value. According to a CII study released in April 2023 ,163 Indian companies invested over US$ 40 billion in the US and created over 425,000 direct jobs. "

Calibrated and calculated approach

India’s posture has been calibrated. The government has not reacted to every political jab. Instead, it stayed focused on long-term economic diplomacy. The February report noted that India’s manufacturing base, skilled workforce, and regulatory upgrades are making it an increasingly attractive alternative to China, a shift that Washington, regardless of who is in power, is paying attention to as well.

Sources say upcoming bilateral meetings may focus on strengthening semiconductor supply chains, easing investment norms, and enhancing market access in non-sensitive sectors. India, however, will draw the line on issues like agricultural imports and digital data regulations, areas where sovereignty and local industry are at stake.

Even as Trump’s words trend, India’s trade strategy and foreign policies seem to be quietly at work.

Madhuparna Das

Madhuparna Das, Associate Editor (policy) at CNN News 18, has been in journalism for nearly 14 years. She has extensively been covering politics, policy, crime and internal security issues. She has covered Naxa...Read More

Madhuparna Das, Associate Editor (policy) at CNN News 18, has been in journalism for nearly 14 years. She has extensively been covering politics, policy, crime and internal security issues. She has covered Naxa...

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August 04, 2025, 12:48 IST

News india While Trump Fires Salvos, India Builds: $300 Billion Trade Target With US Powers Ahead

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