US targets $500 billion India trade in 3 years, up from record $240 billion

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The Economic Times daily newspaper is available online now. Read Today's Paper US targets $500 billion India trade in 3 years, up from record $240 billion, Sergio Gor saysET OnlineLast Updated: Oct 21, 2026, 04:24:00 PM ISTSynopsis

The United States plans to increase bilateral trade with India to over USD 500 billion in three years. This trade target comes after reaching a record USD 240 billion, highlighting growing economic ties. Collaboration will focus on sectors like semiconductors, energy, and defense to foster mutual interests. Recent diplomatic engagements have already begun shaping a strategic alignment for both nations.

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Loading...×The United States aims to more than double bilateral trade with India to over $500 billion within the next three years, from a record $240 billion, US Ambassador to India Sergio Gor said, as Washington seeks to deepen economic ties with New Delhi across sectors ranging from semiconductors and energy to defence and critical minerals.

Addressing business leaders and diplomats at the Freedom 250 reception in Mumbai, Gor said US President Donald Trump had given him a clear mandate to deliver tangible outcomes from the partnership.

Also read: Marco Rubio, S Jaishankar discuss energy ties as India-US trade deal nears finalisation

"Deliver results. Don't just talk about the future. Make it happen," Gor quoted Trump as saying.

"In their recent discussions, President Trump and Prime Minister Modi reaffirmed that commitment," Gor said. "Today, our bilateral trade has shattered records, reaching over $240 billion. We have an ambitious goal. We are laser-focused on driving that number past $500 billion in the next three years."

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Semiconductors, energy and defence in focus

Gor said the next phase of economic cooperation would cover critical and emerging sectors, including semiconductors, critical minerals, energy, defence and superintelligence.

Describing the scope of the partnership, he said cooperation between the two countries extended from deep-sea infrastructure to commercial space exploration.

"The US-India partnership does not move in a flat line; it climbs. It begins in the ocean depths with critical data infrastructure. It rises through our factories, labs, and research hubs, and it extends into deep space through commercial exploration," he said. "That is the trajectory of our alliance, rooted deep in fundamentals, accelerating upward at record speed, and heading straight for the stars."

Gor also pointed to Mumbai's importance in the economic relationship, noting that more than 500 major American companies operate in the city. These include technology companies Google, Meta and IBM; consumer goods makers Procter & Gamble and Johnson & Johnson; pharmaceutical companies Pfizer, Abbott and Merck; and financial institutions Citi, Bank of America and JPMorgan Chase.

American institutional investors also represent the largest single block of foreign capital in Indian equities traded on Mumbai's stock exchanges, he said.

"That is not an accident. That is a massive vote of confidence in India's economic trajectory," Gor remarked. "None of this happened by accident, and none of it was built overnight."

Reflecting on the relationship's historical ties at the event, he added, "What we have seen over the next 250 years has been incredible. What we hope to see over the next 250 years will be even more incredible."

Also read:‘We don’t come enough’ to India, says Rubio on return visit; flags region’s role in shaping 21st-century history

Rubio calls strategic alignment 'extraordinary'

US Secretary of State Marco Rubio described the strategic alignment between Washington and New Delhi as "extraordinary", saying the two countries had an opportunity to shape the course of the 21st century through closer cooperation.

Rubio acknowledged that the countries would not agree on every issue but said their shared core interests could influence geopolitics, economics, trade and commerce for decades.

"No two nations on Earth will ever be perfectly aligned on every issue, and there will be times and points of disagreement," Rubio stated.

"But on the core issues that matter, the core issues that define the national interests of both India and the United States, the alignment between our countries is extraordinary," he added.

Rubio pointed to India's population, approaching 1.5 billion, and the United States' position as the world's largest economy as factors that gave the partnership significant global weight. He also said Washington should engage diplomatically with India more frequently, describing it as one of the United States' most important geopolitical partners.

The remarks come as the two countries pursue an interim trade agreement. In February 2026, India and the US announced a framework for an agreement aimed at improving market access and reducing trade barriers.

According to the Commerce Ministry, the proposed arrangement covers sectors including textiles, leather, engineering goods and pharmaceuticals, with several tariff concessions contingent on the agreement's conclusion.

India's merchandise exports to the US stood at $87.31 billion in FY 2025-26, while imports totalled $53.45 billion, according to official trade data from the Ministry of Commerce and Industry.

The proposed agreement is expected to provide greater certainty for exporters and businesses in both countries. However, its final terms and implementation timeline have yet to be announced.

(With inputs from ANI)
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