The United States has set a target of increasing bilateral trade with India to more than $500 billion within the next three years, up from the current record of around $240 billion, US Ambassador to India Sergio Gor said on October 21, 2026. He outlined the goal while addressing business leaders and diplomats at the Freedom 250 reception in Mumbai.
Gor said President Donald Trump had given him a clear mandate to deliver results in the bilateral relationship. He added that Trump and Prime Minister Narendra Modi had reaffirmed their commitment to expanding trade during recent discussions.
Focus on Strategic and Emerging Sectors
The US ambassador identified semiconductors, critical minerals, energy, defence and advanced artificial intelligence capabilities as important areas for future economic cooperation. He described the partnership as extending across sectors ranging from deep-sea infrastructure and industrial research to space exploration.
The proposed expansion would require stronger commercial ties, greater investment and deeper cooperation between businesses in both countries. More than 500 major American companies operate in Mumbai, spanning technology, consumer goods, pharmaceuticals and financial services, Gor noted. He also highlighted the significant presence of US institutional investors in Indian equities.
Trade Agreement Remains a Key Focus
The trade target comes as India and the US continue discussions on an interim trade agreement. The proposed framework is intended to improve market access and reduce trade barriers, although final terms and an implementation timeline have yet to be announced.
According to figures cited by the Indian Commerce Ministry, India’s merchandise exports to the US reached $87.31 billion in FY2025–26, while imports stood at $53.45 billion. These figures cover merchandise trade and are narrower than the broader bilateral trade measure cited by Gor.
Ambitious Target, Dependent on Trade and Investment
Raising bilateral trade beyond $500 billion within three years would require substantial growth in goods and services exchanges, alongside stronger investment and supply-chain links. Progress will depend on the outcome of trade negotiations, market access, tariff arrangements and cooperation across the sectors identified by both governments.
Gor’s remarks signal Washington’s stated ambition to expand economic engagement with India, but the $500 billion figure remains a target rather than a confirmed future trade outcome.
