UPDATE 1-India aims to strengthen economic ties with US, engage with Trump administration

Adds trade minister's comments in paragraphs 2,6

NEW DELHI, Jan 3 (Reuters) - India is looking forward to strengthening its economic relationship with the United States by engaging with the incoming Trump administration, India's trade minister Piyush Goyal told reporters in New Delhi on Friday.

"We are looking forward to a very deep and substantive engagement with the new US administration," the trade minister said, noting that under Prime Minister Narendra Modi, India has bolstered bilateral relations with successive U.S. administrations, including those led by Barack Obama, Donald Trump and Joe Biden.

Bilateral trade between India and the United States, India’s largest trading partner, exceeded $118 billion in 2023/24, with India registering a trade surplus of $32 billion.

Industry estimates suggest that trade could grow by an additional $50 billion within two to three years, underscoring significant potential for stronger economic cooperation.

The government and industry groups favour a broader trade and investment pact with the United States to help Indian manufacturers integrate into global supply chains while retaining policy flexibility to safeguard national interests.

Goyal said that India’s goods and services trade is projected to surpass $800 billion in the 2024/25 fiscal year, ending March.

While aiming to protect its manufacturers from potential U.S. tariff hikes on its exports, India is exploring ways to strengthen ties with Washington as Trump has threatened tariffs of 60% and other curbs on imports from China.

(Reporting by Manoj Kumar in New Delhi, writing by Shanima A; editing by YP Rajesh and Toby Chopra)

((shanima.a@thomsonreuters.com; (Direct: +91 72 5956 7774);))