Mumbai, Apr 21: India is close to finalising a comprehensive Bilateral Trade Agreement (BTA) with the US, which is expected to facilitate zero-duty imports under the production-linked incentive (PLI) schemes and enhance bilateral trade, targeted to reach $500 billion by 2030, according to a report released on Monday.

Despite the global upheaval, India’s consumption-driven economy, demographic dividend, and relatively low export dependency position it favourably, said the report by Asit C. Mehta Investment Interrmediates Ltd (ACMIIL), a Pantomath Group company. With merchandise exports to the US accounting for only 2.1 per cent of India’s GDP, the country is less vulnerable to external shocks compared to other export-heavy economies.

The report underscores India's potential to benefit from supply chain diversification, especially as the US imposes steep tariffs on Chinese imports. “India’s 26 per cent reciprocal tariff is moderate in comparison, improving its appeal as a manufacturing and trading partner,” the report mentioned.

India's economic resilience is underscored by strong macro fundamentals, with a projected GDP growth of 6.5 per cent for FY26 and a commitment to fiscal prudence as the fiscal deficit is expected to reduce to 4.9 per cent in FY25.

The Reserve Bank of India has shifted towards a more accommodative monetary stance, with anticipated repo rate cuts expected to stimulate private investment. According to the report, a key structural advantage lies in India’s demographics — 51 per cent of the population is under 40, driving consumption, with Gen Z and millennials emerging as the primary spenders.

On the market front, technical and valuation indicators point toward a bottoming out, creating conditions conducive for medium- to long-term equity outperformance. The government's policy support, including the ‘Make in India’ initiative and a focus on ease of doing business, continues to strengthen various sectors, the report noted.

(IANS)