The United States emerged as India’s largest trading partner during the 2022-23 fiscal year. Specifically, India US bilateral trade grew significantly due to the strengthening economic relationship between the two nations. This shift highlights a vital change in global trade dynamics as India diversifies its economic reach.
Surpassing China in Trade Volume
Commerce ministry data reveals that bilateral trade between the nations increased by 7.65 per cent. Consequently, the total trade value reached USD 128.55 billion in 2022-23, rising from USD 119.5 billion in the previous year. Furthermore, exports to the US climbed to USD 78.31 billion, while imports grew by approximately 16 per cent to reach USD 50.24 billion.
In contrast, India’s trade with China experienced a decline of 1.5 per cent. Total commerce with China dropped to USD 113.83 billion during the same period. Because exports to China dipped by 28 per cent, the trade gap widened to USD 83.2 billion.
Key Drivers of Export Growth
Federation of Indian Export Organisations (FIEO) President A Sakthivel highlighted the growth in specific sectors. For instance, increasing exports in pharmaceuticals, engineering, and gems and jewellery helped push shipments to America. Additionally, FIEO Vice President Khalid Khan noted that global firms now view India as a trusted alternative to China.
India also maintains a rare trade surplus with the US. Specifically, this surplus reached USD 28 billion in 2022-23. Major export items to the US include petroleum, polished diamonds, and frozen shrimp. Meanwhile, India primarily imports petroleum, rough diamonds, and gold from the US.
Emerging Trading Partners in the Region
While the US holds the top spot, other nations also play vital roles in India’s economic strategy. For example, the UAE remains India’s third largest partner with USD 76.16 billion in trade. Following the UAE, Saudi Arabia and Singapore occupy the fourth and fifth positions respectively. Experts believe this trend of robust trade with the US will continue as both countries further strengthen their economic ties.
Source: livemint
