The bilateral trade between the US and India during the financial year 2021-22 stood at $119.42 billion, surpassing China to become India’s top trading partner in the last financial year. India’s trade with China aggregated at $115.42 billion during 2021-22, according to data from the commerce ministry.
India’s two-way commerce with the US in the previous financial year 2022-21 had stood at $80.51 billion. Exports to the US increased to $76.11 billion in 2021-22 from $51.62 billion in the previous financial year, while imports rose to $43.31 billion as compared with about $29 billion in 2020-21, according to the data.
India’s bilateral trade with China during 2021-22 stood at $115.42 billion as compared to $86.4 billion in 2020-21, the data showed. Exports to China marginally increased to $21.25 billion in the financial year 2021-22 from $21.18 billion in 2020-21. Imports jumped to $94.16 billion as compared with about $65.21 billion in 2020-21. The trade gap rose to $72.91 billion in 2021-22 from $44 billion in the previous fiscal year.
According to the data, China was India’s top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country’s largest trading partner. In 2021-22, the UAE with $72.9 billion was the third-largest trading partner of India. It was followed by Saudi Arabia ($42,85 billion), Iraq ($34.33 billion) and Singapore ($30 billion).
Trade experts believe that the trend of increasing bilateral trade with the US will continue in the coming years also as New Delhi and Washington are engaged in further strengthening the economic ties.
Federation of Indian Export Organisations (FIEO) Vice-President Khalid Khan said India is emerging as a trusted trading partner and global firms are reducing their dependence only on China for their supplies and are diversifying their business into other countries like India.
“In the coming years, the bilateral trade between India and the US will continue to grow. India has joined a US-led initiative to set up an Indo-Pacific Economic Framework (IPEF) and this move would help boost economic ties further,” Khan said.
Rakesh Mohan Joshi, director of the Indian Institute of Plantation Management (IIPM), Bengaluru, also said India is home to 1.39 billion people with the world’s third-largest consumer market and the fastest-growing market economy with unparalleled demographic dividend.
He added that it provides enormous opportunities for the US and Indian firms for technology transfer, manufacturing, trade and investment.
“Major export items from India to the US include petroleum polished diamonds, pharmaceutical products, jewellery, light oils and petroleum, frozen shrimp, made-ups, etc. whereas major imports from the US include petroleum, rough diamonds, liquified natural gas, gold, coal, waste and scrap, almonds, etc,” Joshi said.
America is one of the few countries with which India has a trade surplus. In 2021-22, India had a trade surplus of $32.8 billion with the US.
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