By 2022–2023, the US will surpass all other trading partners as India’s largest trading partner due to the two nations’ growing economic connections. The bilateral trade between India and the US climbed by 7.65 percent to USD 128.55 billion in 2022–23 from USD 119.5 billion in 2021–22, according to preliminary figures from the commerce ministry. In 2020–21, it was USD 80.51 billion.
The data revealed that imports increased by almost 16% to USD 50.24 billion, while exports to the US increased by 2.81 percent to USD 78.31 billion in 2022–23 from USD 76.18 billion in 2021–22. However, during 2022–2023, India’s two-way trade with China decreased by around 1.5% to USD 113.83 billion as opposed to USD 115.42 billion. bn in 2021–2022.
While imports increased by 4.16 percent to USD 98.51 billion in the most recent fiscal year, exports to China fell by roughly 28% to USD 15.32 billion. The trade deficit increased from USD 72.91 billion in 2021–2022 to USD 83.2 billion in the most recent fiscal year.
The trend of growing bilateral commerce with the US is expected to continue in the years to come as New Delhi and Washington work to further cement their economic ties, according to experts.
According to A Sakthivel, president of the Federation of Indian Export Organisations (FIEO), rising exports of products like pharmaceuticals, engineering, and gems and jewellery are assisting India in pushing its shipments to America.
“Trade with the US will continue to grow in line with recent trends. Also in the upcoming months, he remarked.
India is becoming a reliable trading partner, according to FIEO Vice President Khalid Khan, and multinational corporations are expanding their business into nations other than China in order to diversify their sources of supplies. The US continues to place solid orders with our exporters, thus the two countries’ commerce will increase, according to Khan.
The third-largest consumer market and fastest-growing market economy in the world, India offers the US a wealth of trade options, according to Rakesh Mohan Joshi, Director of the Indian Institute of Plantation Management (IIPM), Bangalore.Petroleum, polished diamonds, pharmaceuticals, jewellery, light oils, and petroleum are among India’s top exports to the US. Frozen prawns, made-ups, etc. are big US imports, whereas oil, uncut diamonds, liquefied natural gas, gold, coal, garbage and scrap, almonds, etc. are major US exports, according to Joshi.
