The bilateral trade between US and India has increased by 7.65% with the aim of reaching $128.55 billion during the fiscal year 2022-23, as per the provisional data from the Commerce Ministry.
This will help the United States to become its biggest trading partner in India. There has been a growing economic relationship between the two nations for which the trade amount increased from $80.51 billion in 2023-21 and $119.5 billion in the previous year.
It is predicted that the relationship between the countries will help India to develop more in future. On the other hand, two-way trading with China during 2022-23 has declined by 1.5% to $113.83 billion from $115.42 billion in 2021-22.
Increasing Import than Export in the United States
According to the statistics, India’s exports to the US rose by 2.81% to $78.31 billion in the fiscal year 2022–23 from $76.18 billion in 2021–22, while the US’s imports jumped by almost 16% to $50.24 billion.
However, as both nations are committed to fortifying their economic relations, analysts predict that the trend of rising bilateral commerce with the US will continue. FIEO (Federation of Indian Export Organisation) said that India’s shipments to the US are apparently being driven by the export of products including medicines, engineering, gems and jewellery.
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.
India had a $28 billion trade surplus with the US in 2022–2023, making it one of the few nations with whom India enjoys a trade surplus.
India-China Trade Relations
India’s exports to China fell by over 28% to $15.32 billion in the fiscal year 2022–23, while imports from China increased by 4.16% to $98.51 billion, resulting in a larger trade deficit of $83.2 billion as opposed to $72.91 billion in 2021–22.
India is becoming a reliable trade partner, according to FIEO Vice President Khalid Khan, and multinational corporations are expanding their operations into nations other than China in order to diversify their sources of supply.
Data indicated that from 2013–14 through 2017–18 and also in 2020–21, China was India’s biggest trading partner. The UAE was the nation’s top trading partner before China.
India-UAE Trade Relations
The third largest trading partner of India in 2022–2023 was the UAE, with USD 76.16 billion. Singapore ($35.55 billion) and Saudi Arabia ($52.72 billion) were the next largest economies.