According to the 2023 fiscal year survey, the US stands as India's largest trading partner, recording $128.78 billion. And China is in second position. India's exports to the US increased by 2.81% from 2022 to 2023 to reach $78.54 billion. Whereas in 2021-22 it was 76.11 billion dollars. And Imports with the U.S. rose nearly 6% to $50.24 billion. In 2021-22 it was $43.31 billion. This improvement has led to increased bilateral trade and increased economic relations between the two countries. On the other hand, India's bilateral trade with China is decreasing every year. Trade was $113.83 billion in 2021-22, which declined by 1.5% to $115.42 billion in 2022-23. The economic partnership between India and the US has seen significant progress in recent years. Trade production in USA to become India's largest trading partner in FY 2023. This resulted in bilateral trade value of US$128.78 billion in 2023. In recent years, India has accelerated its inter-island trade with the United States. The value of USA's bilateral trade with India in FY 2022 was $119.42 billion, and in FY 2023, it increased to $128.78 billion. As of 2023 census, India is the leading exporter of goods to the United States.
In June 2023, Indian Prime Minister Narendra Modi visited the United States and held meetings with President Biden on various issues. The main objective of the meeting is to strengthen bilateral relations between the two countries in important areas including trade, innovation and technology. Currently, the US is India's largest trading partner, about 12% of India's total merchandise trade is with the USA. The Prime Minister's visit to the US signals further strengthening of the two countries' joint efforts to boost trade.
The following is the trade data between India and the US for the fiscal year 2018 to 2023
Various trade experts and economists in India believe that bilateral trade with the US will increase in the future. FIEO President A Sakthivel said the trade growth with the US will continue to be on the upward trend in the coming days as well. FIEO vice-president said India is emerging as a reliable partner in the global market. Foreign companies are also strengthening trade ties with countries like India, reducing their reliance on China alone to supply their products.
Import materials from USA to India.
The USA is currently India’s largest trading partner. According to the study, India will import goods worth $50.24 billion from the US in fiscal 2022. And among the imported products the significant products are: unrefined fuels, oil, distillation products, pearls, precious stones, metals, machinery, boilers, nuclear reactors, plastic optical, technical and medical apparatus. aluminium electronic equipment, cotton, iron & steel, vehicles other than railway, aircraft, copper pharmaceutical products, animal and vegetable fat and oils, rubbers, ETC.
Export materials from India to USA
According to 2022 data, exports from India to the US were worth about $80.23 billion. The products exported from India are: diamonds not Mounted, Medicines and medicinal product, gasoline, shrimp and crustaceans, jewellery parts, basmati and non-basmati rice, essential oil, spices, processed fruit and vegetables, Etc.
Imports materials amount from India to USA (in Dollar) (in year 2022)
The relationship between the US, China and India
The relationship between the US, China and India remains somewhat of a mystery. On the one hand, the US is trying to maintain relations with China and on the other hand it is also strengthening relations with India. Looking at the period from 2013-14 to 2017-18, we find that China has become India's largest partner in technology trade. China was India's largest trading partner during that period. But India-China relations are currently deteriorating due to the India-China conflict in India's Ladakh region and relations with some of China's extremist supporting countries. Since 2018-19, economic and trade relations between China and India started to deteriorate. And the USA uses this opportunity to strengthen its relations with India. According to 2022-23 trade data, India's trade with China declined by 1.5%. India is also currently reducing its dependence on China. Similarly, dependence on India, Iran and Russia is slowly decreasing. After the Ukraine-Russia war, the United States imposed various sanctions on Russia. Due to which India has been reducing trade with Iran in the past and now with Russia. India's Prime Minister's sixth visit to the US strengthens India-US ties. Currently, India and the US should expand their bilateral relations and consider alternatives to dependence on China. But they also need to ensure that relations with Beijing continue.
India USA Trade Ties Growing
Bilateral trade between the US and India will grow by 7.65% to $128.55 billion in fiscal 2023. Which makes the US India's largest trading partner. We have seen bilateral trade between India and the US in the last five years. It was $74.48 billion in FY 2017-18, while it increased to $87.95 billion in FY
2018-19 and $88.90 billion in FY 2019-20. Again, in the financial year 2020-21 due to the covid-19 pandemic, trade decreased to $80.51 billion. Again, in the fiscal year 2021 22 it increased again to 119.42 billion dollars. Which was much higher than last year. Then it increased to $128.78 billion in the fiscal year 2022-23. This is the highest ever. This growing trade has strengthened the India-US trade relationship. Experts believe that the growing commercial and economic relationship between India and the US will continue in the future as both countries focus on enhancing their economic ties. Exports of products like medicine, engineering and precious stones, diamonds, jewellery etc. are increasing India's trade volume with the US. However, imports from India to the US have increased compared to exports. Exports were $76.11 billion in 2021-22 which increased by 2.81% to $80.23 billion in FY2022. Again, India's imports were $43.31 billion in 2021-22, increasing by nearly 16% to $50.24 billion in FY2022-23.
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