The USA is India’s largest export vacation spot and second-largest buying and selling accomplice after China. Over the previous decade, commerce relations between these two main world economies have witnessed important enchancment. Knowledge obtainable from CMIE reveals that India’s complete commerce with the US has surged 92% within the final 10 years to $118.3 billion in FY24 from $61.5 billion in FY14. Now that the US elected Donald Trump as the brand new president after the elections in November 2024. It’s attention-grabbing to see how the Bilateral commerce will develop beneath his presidency. Right here is the commerce panorama for the final ten years between the 2 international locations and beneath which president the commerce development was greater.
India’s complete exports to the world’s largest financial system practically doubled up to now 10 years.
India’s exports to the US held regular in 2023-24 (FY24) at $77.53 billion, a slight dip from the earlier 12 months’s excessive of $78.40 billion. Whereas Within the final 10 years, India’s exports have surged 98% to $77.5 billion in FY24 from $39.1 billion in FY14. The sustained excessive export ranges mirror India’s stable commerce relationship with the U.S., with the nation remaining a key vacation spot for Indian items, together with engineering merchandise, chemical compounds, and electronics.
Nevertheless, throughout President Trump’s tenure from January 2017 to January 2021 (majorly FY18 to FY21) India’s exports to the US surged 22% in 4 years. Whereas beneath President Biden regime India’s exports to the US jumped 51% in simply three years (as knowledge for FY25 just isn’t obtainable but).
India’s Export Composition to the USA, 2023-24: Engineering and Chemical compounds Lead
India’s exports to the US within the 2023-24 interval showcased a diversified portfolio, totalling $77.5 billion in numerous sectors. Engineering items topped the checklist, bringing in $16.3 billion, adopted by chemical compounds and associated merchandise at $12.8 billion. Digital items additionally noticed important export worth at $10.5 billion, whereas gems and jewelry contributed $9.9 billion. Petroleum merchandise, although decrease, added $5.8 billion. Different merchandise collectively accounted for $22.2 billion, underscoring the vary of India’s exports to the U.S.
India’s Imports from the U.S. Decline in 2023-24 after Current Progress
India’s imports from the US skilled a slight decline in FY24, totalling $40.76 billion in comparison with $50.84 billion in FY23. This lower follows a interval of constant development from 2017-18 onward, with a big bounce from $35.75 billion in 2019-20 to $43.35 billion in 2021-22. The 2023-24 dip might mirror shifting commerce dynamics and altering world financial circumstances, with import ranges nonetheless considerably above pre-2020 ranges.
Total within the final 10 years India’s imports have surged 82% to $40.76 billion in FY24 from $22.4 billion in FY14. Whereas beneath president Trump’s rule from FY18 to FY21 India’s imports from the US surged 29% in 4 years. Alternatively beneath President Biden, India’s imports jumped 42% in three years.
India’s Key Imports from the U.S. in FY24: Engineering and Petroleum Lead
Within the fiscal 12 months 2023-24, India’s imports from the US had been led by engineering items, totalling $8.1 billion, adopted intently by petroleum crude and merchandise at $7.8 billion. Ores and minerals contributed $4.5 billion, whereas chemical compounds and associated merchandise accounted for $4.3 billion. Imports of digital items stood at $4.25 billion, and pearls, valuable, and semiprecious stones added $3.5 billion. Different merchandise collectively reached $8.2 billion, reflecting India’s broad import spectrum from the U.S.
The US specializing in provide chain diversification as a result of “China plus one” coverage and India’s contributions, significantly in know-how, innovation, and key sectors like IT, AI, and semiconductors, are poised for substantial development. In accordance with Indian authorities estimates the bilateral commerce between India and the US is predicted to surge to almost $500 to $600 billion in 2030, greater than 4 occasions its present worth of $118 billion.
Nevertheless, the US election outcomes will play a pivotal function in shaping the longer term trajectory of India-US commerce relations.
