Recent reports have revealed that the US surpassed China and became India’s biggest trading Partner in the financial year 2022-23. The data released by the Ministry of Commerce suggests that the bilateral trade between the US and India reached $119.42 billion from $80.51 billion in 2020-21. Exports increased to $76.11 billion from $51.62 billion in 2021-22 compared to the previous fiscal year. Talking about imports, they rose from $29 billion to $43.41 billion in 2020-21.
On the other hand, in FY23, India’s two-way commerce with China declined by about 1.5 per cent to USD 113.83 billion against USD 115.42 billion in 2021-22. In 2023, the exports to China from India fell by about 28 per cent to USD 15.32 billion in 2022-23, while imports rose by 4.16 per cent to USD 98.51 billion.
Experts predicted that bilateral trade with the US would continue as New Delhi and Washington strengthen their economic ties in the coming years.
A Sakthivel, the President of Federation Export Organisations (FIEO), said that increasing exports of goods such as pharmaceuticals, engineering, and gems & jewellery is helping India to push its shipments to America.
On the other hand, Vice President Khalid Khan said, “The bilateral trade between India and the US will continue to grow as tour exporters are getting good orders from that country.”
He said India is emerging as a trusted trading partner globally, which is good news for India that will impact its economic growth. With this, India records a 14 per cent surge in exports. It also allows global firms to reduce their dependence on China for supply and diversifying business.
Rakesh Mohan Joshi, Director of the Indian Institute of Plantation Management (IIPM), Bangalore, also stated that India provides tremendous trade opportunities for the US as India appears as the third-largest consumer and the fastest-growing market economy.
Diamonds, gold, coal, petroleum, liquified natural gas, waste, scrap, and almonds are a few major export items from India to the US, as Joshi said.
According to the reports, China remained the top trading partner from FY 2013-14 to 2017-18 and 2020-21. But in 2022-23, India had a trade surplus of USD 28 billion with the US.
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