Arvind Panagariya says that the United States Trade Agreement can open $ 500 billion in bilateral trade.

India is on the brink of securing a major trade agreement with the United States, a step that may lead to a large -scale economic liberalization within the country. Arvind Panagariya, Chairman of the Sixteenth Finance Committee, expressed that this development will be a “big snapshot in the arm” of India, where it negotiates both the American commercial deals and the European Union. These agreements are expected to make India an attractive destination for investors due to increased access to markets and reduce border friction.

President Donald Trump has constantly expressed optimism about the imminent commercial deal. “We are very close to a deal with India, where they open it.” This agreement was a pivotal point in discussions, with a specific deadline for August 1 by Trump, after which states, including India, may face a highly declining tariff.

Panagariya highlighted the double benefit of the United States and India agreement, with the focus that “the most important thing is that this will lead to a lot of liberation by India itself, and that, I think, is a very large part of the story. Of course, access to the American market is also also to its other competitors as well.” This liberation is seen as a major component of India’s economic strategy to move forward.

The Minister of Trade Piyush Goyal indicated that negotiations with the United States are “great progress”. This feeling is involved in the US Minister of Trade, who expressed his optimism for a deal in the near future. It is expected that the potential agreement significantly reduce the definitions, which paves the way for a more powerful bilateral trade.

In terms of economic impact, the agreement can significantly enhance India’s commercial balance. In 2024, the American commodity trade with India amounted to $ 129.2 billion. With a strategy called “Mission 500”, Prime Minister Narendra Modi and President Trump aims to strengthen bilateral trade to $ 500 billion by 2030. This ambitious goal emphasizes the importance of the imminent agreement.

Panagariya also referred to, “With these two commercial deals, India will get an open market with the European Union, with the United States. They are expected to attract this open market a large foreign investment.

By highlighting the upcoming economic opportunities, Panagariya said, “This is an enormous opportunity for India, and it is seriously negotiating the agreement with the United States. So I hope to hear good news.” This optimism reflects the broader Indian economic view, which expects strong growth and development.

The transition from the rural agricultural economy to one dominated by industry and services is still a major challenge to India. “Therefore, creating paid jobs in industry and services is the biggest challenge,” Panagria said. Successful negotiations on the American commercial deal of India can address some of these challenges by opening new ways of reform and economic investment.