According to a statement issued following a Trade Policy Forum meeting in Washington D.C., the working group will initially focus on trade facilitation, digitization of customs procedures, issues related to sustainable finance, and scaling up of innovative clean technologies.
The countries also agreed to continue close monitoring of visa issues and increase dialogue on food and agricultural trade issues in 2023 at a meeting co-chaired by India's trade minister, Piyush Goyal, and US Trade Representative Katherine Tai.
According to the statement, the US will also consider India's interest in regaining beneficiary status under the US generalised system of preferences programme.
After a four-year hiatus, the Trade Policy Forum will reconvene on a ministerial level before the end of 2023. The two countries stated that they intend to continue working together to resolve outstanding trade issues.
"Waiting for all-or-nothing comprehensive agreements will only slow our shared goal of achieving a $500 billion trade relationship," said Atul Keshap, president of the US Chamber of Commerce's US-India Business Council.
Goyal also stated that the two countries are considering larger bilateral footprints for trade and investment rather than mini deals, with an emphasis on greater market access and ease of doing business.
He added that US companies are looking to invest more in India. The United States has remained India's largest trading partner, with $102.3 billion in goods and services exported to the US. The US continues to have a trade deficit with India, which was -$45.5 billion in 2021.
"American companies have ambitious plans and are looking to invest large sums of money and bring technology to India," Goyal said in a statement issued on Thursday.
