India, US Set to Finalize Trade Deal by October Under ‘Mission 500’ Initiative

Washington DC/New Delhi: India and the United States have agreed to negotiate a multi-sector bilateral trade agreement by September-October 2025, as both nations push forward with the ambitious “Mission 500” initiative, which aims to double bilateral trade to $500 billion by 2030.

The decision was announced following a high-level bilateral meeting between Prime Minister Narendra Modi and US President Donald Trump in Washington DC. The meeting also resulted in commitments to strengthen military and energy partnerships, with India set to purchase additional oil and military hardware from the US.

Strengthening Economic and Military Ties

Foreign Secretary Vikram Misri stated that the first phase of the proposed trade agreement will cover multiple sectors and is expected to be mutually beneficial. Meanwhile, the US has committed to expanding its defense cooperation with India, including co-production of Javelin anti-tank guided missiles and Stryker infantry combat vehicles in India. The US also showcased its fifth-generation fighter jet, the F-35, at Aero India in Bengaluru, signaling possible future defense acquisitions by India.

In a major boost to India’s maritime capabilities, the country is considering the procurement of six additional P-8I maritime patrol aircraft for the Navy. Additionally, both countries announced a new Autonomous Systems Industry Alliance, aimed at scaling up industrial partnerships and production within Indo-Pacific nations.

Technology and Energy Collaboration

In the technology sector, the US and India have launched the US-India TRUST (Transforming the Relationship Utilizing Strategic Technology) Initiative, which will foster collaboration in critical and emerging technologies such as artificial intelligence, semiconductors, quantum computing, biotechnology, energy, and space. The initiative will also ensure that sensitive technologies are protected and that verified technology vendors are utilized.

Energy security remains a key aspect of bilateral ties, with both sides reaffirming their commitment to the US-India Energy Security Partnership. This includes expanded cooperation in oil, gas, and civil nuclear energy, further strengthening India’s energy diversification efforts.

Political and Strategic Developments

During the discussions, PM Modi clarified that he did not discuss the bribery charges leveled against Indian business tycoon Gautam Adani with President Trump, stating that “two prominent leaders of two countries never discuss such individual issues.”

Meanwhile, addressing concerns about alleged US interference in Bangladesh’s political affairs, President Trump dismissed the notion of a “deep state” involvement and asserted that the issue would be handled by PM Modi.

The upcoming months will be crucial as India and the US work toward finalizing the first tranche of their trade agreement, solidifying their defense and technological collaborations, and advancing their shared vision for a more integrated Indo-Pacific region.