In 2021-22, the United States eclipsed China as India’s biggest trading partner, indicating the two countries’ growing economic connections.
In 2021-22, the United States eclipsed China as India’s biggest trading partner, indicating the two countries’ growing economic connections. According to figures from the commerce ministry, bilateral trade between the United States and India was $119.42 billion in 2021-22, up from $80.51 billion in 2020-21.
Exports to the United States surged to $76.11 billion in 2021-22, up from $51.62 billion the previous fiscal year, while imports increased to $43.31 billion, up from around $29 billion the previous fiscal year.
According to the research, India’s two-way trade with China was $115.42 billion in 2021-22, up from $86.4 billion in 2020-21.
Last fiscal year, exports to China climbed modestly to $21.25 billion, up from $21.18 billion in 2020-21, while imports increased to $94.16 billion, up from $65.21 billion in 2020-21. In 2021-22, the trade deficit grew to $72.91 billion, up from $44 billion the previous fiscal year.
As New Delhi and Washington work to strengthen their economic ties, trade experts believe that the trend of increasing bilateral trade with the US will continue in the coming years.
Vice President of the Federation of Indian Export Organizations, Khalid Khan, stated that India is establishing itself as a reliable trading partner, and that global companies are diversifying their supply chains beyond China.
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.
“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.
Rakesh Mohan Joshi, Director of the Indian Institute of Plantation Management (IIPM), Bangalore, agreed, saying that India, with its 1.39 billion people and the world’s third largest consumer market and fastest growing market economy, offers enormous opportunities for technology transfer, manufacturing, trade, and investment for US and Indian companies.
One of the few countries with whom India maintains a trade surplus is the United States. India has a $32.8 billion trade surplus with the United States in 2021-22.
China was India’s top trading partner from 2013-14 to 2017-18, and again in 2020-21, according to the data. Prior to China, the UAE was the UAE’s most important commercial partner.
With $72.9 billion in trade, the UAE was India’s third largest trading partner in 2021-22. Saudi Arabia ($42.85 billion), Iraq ($34.33 billion), and Singapore ($30 billion) came in second and third, respectively.