India- US Trade: Key Facts and Trends
Are you planning to do trade with India and USA? If yes, then it is important that you know the trade dynamics of both the countries to make sure successful foreign trade. Here comes the role of authentic and real time Custom Import Export Data to play.
Foreign trade with India and USA is a great business idea. Both countries have good bilateral trade relations with each others. Furthermore, over the years, Indian products are in great demand in USA and vice versa. Both the countries are indulging in good trade and investment relationships.
Some analysts and business groups have ensured that both the countries have good potential to enhance trade ties and engage on global and regional trade issues.
Know the Indian Economy
In 2022, the Indian Economy was the 5th largest in the world. The country is expected to expand by 6.1% by the end of 2023. India has promoted G20 in September 2023 epitomizing its economic progress. One of the main components of the Indian economy is its services, mainly information technology.
Agriculture sector provides largest employment opportunities to the country. The country has majority of the population in middle class. However, even today, India has many issues of poverty, unemployment and infrastructure.
The Indian government has over the past few years implemented some major economic reforms with the main aim of attracting FDI and positioning the country as an alternative for businesses looking to expand their supply chain outside China.
India and America has a great potential for bilateral international trade as the former presents a major prospects for American businesses. Indian high-tech companies and multinational corporations are equal to their international counterparts in prominence, capacity and ability. Some industrial sectors like information technology, pharmaceuticals, textiles, engineering and telecommunication have good infrastructure, competiveness and innovation.
India-US Bilateral trade deals
India-US bilateral relations have grown into the global strategic partnership on the basis of shared democratic matters and growing merging of interests on bilateral, regional and global issues. The emphasis established by the central government in India on good governance and development has paved way for an opportunity to reestablish bilateral relations and improve collaboration under ‘Sab ka Saath, Sab Ka Vikas- Forward we go together.
As per the USA Export Data, exports to India in 2021 were USD 40.1 billion, a 48.2% increase from 2020. US imports from India was USD 73.3 billion, a 43.1% increase from 2020. As per USA Custom Data, the trade deficit between the two countries was USD 33.1 billion, a 37.3% increase from a deficit of USD 24.1 billion in 2020.
In 2022, as per the USA Import Data, approximately USD 191.8 billion in goods and services were traded between India and the USA. The difference between the exports and imports of goods between the two countries was USD 73 billion. In 2022, the trade deficit of USA with India in goods and services was USD 45.7 billion.
The value of American goods delivered to India in 2022 was USD 47.2 billion, with an increase of 17.9% from 2021. The value of US imports from India were USD 85.5 billion in 2022, an increase by 111% from 2012 and 16.7% from 2021.
In 2022, 2.3% of all the American exports were to India. The US goods trade deficit in the same year with India was USD 38.4 billion, an increase by USD 5 billion from 2021.
IN Financial year 2023 USA emerged as the largest trading partner for India
As per India Shipment Data, the bilateral trade relations between both the countries have increased by 16% to USD 50.24 billion. The exports of US to India increased by 2.81% to USD 78.31 billion in 2022-23. In the FY 2023, the trade between India and the US stood at a record US$ 128.78 billion as against USD 119.48 billion in FY 2022.
The imports in the same year increased by almost 16% to USD 50.24 billion and the exports to US increased by 2.81%. The bilateral trade relations with India and US will continue in the years to come as India and America work to strengthen their economic relationships further. USA is also the third largest investor in India with cumulative FDI inflows of USD 60.19 billion in 2023.
Top USA goods exported to India
The top exports from USA to India in 2022 are oil and gas, coal and petroleum gases, basic chemicals, waste and scrap, miscellaneous manufactured commodities, waste and scrap, aerospace products and parts.
Top US goods imports from India
The top goods imported by USA from India are pharmaceuticals, miscellaneous manufactured commodities, apparel, textile furnishing, and petroleum and coal products. Defense sales also form a significant aspect in the bilateral trade between the two countries.
Wrap up
Both India and USA have intense engagement under bilateral trade in many areas including defense, health, trade, science and technology, security, energy and people-to-people ties.
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