India poised to conclude first part of trade pact with US soon: FM Sitharaman

San Francisco, April 21 (IANS) Finance Minister Nirmala Sitharaman said on Monday that India is actively engaging with the new US administration and hopes to conclude the first tranche of the bilateral trade agreement "positively" by fall (September-October) this year.

"The long and short of engaging with the US is not just for this reciprocal tariff-related matter, but the country is also our largest trading partner with whom we need to have an agreement," Sitharaman said in an interaction with the Indian diaspora in San Francisco.

Earlier this year, US President Donald Trump and Prime Minister Narendra Modi agreed to launch talks for a bilateral trade agreement (BTA), which is part of a new goal—"Mission 500”—aiming to more than double trade between the two countries to $500 billion by 2030.

"The keenness with which we are engaging with the US administration, even as I talk, I think the Vice President of the United States of America (J.D. Vance) is in India, he will be engaging with the Prime Minister, hopefully this evening or tomorrow. In between all this, the Assistant USTR had visited India to see the progress or to engage with the negotiating team that is dealing with the tariff-related negotiation and the bilateral trade agreement that we want to sign. In fact, the progress of the agreement or the trade agreement that we are working on, at least a first tranche is something which we hope to conclude positively by the fall this year," she said during an interaction at the India Community Centre, in San Francisco on Sunday evening (Monday morning IST).

Sitharaman is also scheduled to meet the US Treasury Secretary Scott Bessent and is expected to speak to officials at the United States Trade Representative's office.

The Finance Minister also said that India is being recognised globally for its potential and economic strength, urging the Indian diaspora in the US to partner with India so that both countries can grow and prosper.

India has become the fastest-growing economy driven by the "visionary leadership" of Prime Minister Narendra Modi and the stability provided by a continuing government, she said.

"When we say that India is the fastest-growing economy and when the IMF and World Bank recognise that India can be the engine driving global trade, what they are recognising is the immense potential that exists in India," she said.

Highlighting the steps to strengthen the Indian economy, FM Sitharaman said: "During the Covid-19 pandemic, our fiscal deficit went up. But in 2021, we came up with a clear signal as to how we wanted to manage our fiscal deficit. We set year-on-year targets and committed to bringing the fiscal deficit below 4.5 per cent by 2026. And that's what we have been following each year without fail."

On a five-day trip to the United States, she, during the visit, is slated to deliver a keynote speech at Stanford University and hold discussions with CEOs in San Francisco on investment and technological advancements. The visit will also include participation in diaspora events, enhancing India's global cultural presence.

In Washington DC, Sitharaman will attend the IMF and World Bank Spring Meetings, and the G20 Finance Ministers and Central Bank Governors Meetings. She will also hold bilateral talks on the sidelines with counterparts from the United States, the United Kingdom, France, Germany, Saudi Arabia, and other countries, as well as top officials from international financial institutions. After completing her US trip, Sitharaman will travel to Peru for a visit from April 26 to 30.

--IANS