The United States surpasses China as India’s largest trading partner in FY22 with $ 119.42 billion
The United States surpassed China to become India’s best trading partner in 2021-22, reflecting the strengthening of economic ties between the two countries.
According to data from the Department of Commerce, US-India bilateral trade in 2021-22 was $ 119.42 billion against $ 80.51 billion in 2020-21.
Exports to the United States increased to $ 76.11 billion in 2021-22 from $ 51.62 billion in the previous fiscal year, while imports increased to $ 43.31 billion compared to about $ 29 billion in 2020-21.
During 2021-22, India’s two-way trade with China totaled $ 115.42 billion, compared to $ 86.4 billion in 2020-21, the data showed.
Exports to China increased marginally to $ 21.25 billion last fiscal year from $ 21.18 billion in 2020-21, while imports jumped to $ 94.16 billion from around $ 65.21 billion in 2020-21. The trade gap widened to $ 72.91 billion in 2021-22 from $ 44 billion in the previous fiscal year.
Trade experts believe that the trend of increasing bilateral trade with the United States will continue in the coming years, even as New Delhi and Washington are in the process of further strengthening economic ties.
The Federation of Indian Export Organizations Vice President Khalid Khan said India is emerging as a trusted trading partner and global companies are only reducing their dependence on China for their supplies and diversifying business to other countries like India.
“In the coming years, bilateral trade between India and the United States will continue to grow. India has joined a US-led initiative to establish an Indo-Pacific Economic Framework (IPEF), and this step will help strengthen economic ties further. ” said Khan.
Rakesh Mohan Joshi, director of the Indian Institute of Plantation Management (IIPM), Bangalore, also said that India is home to 1.39 billion people with the world’s third largest consumer market and the fastest growing market economy with unique demographic benefits offers huge opportunities for American and Indian companies in the field of technology transfer, manufacturing, trade and investment.
Major exports from India to the United States include polished petroleum diamonds, pharmaceuticals, jewelry, light oils and petroleum, frozen shrimp, make-ups, etc., while major imports from the United States include oil, rough diamonds, liquefied natural gas, gold, coal, waste and scrap, almonds, etc., “said Joshi.
America is one of the few countries with which India has a trade surplus.
In 2021-22, India had a trade surplus of $ 32.8 billion with the United States.
The data showed that China was India’s best trading partner from 2013-14 to 2017-18 and also in 2020-21. Before China, the UAE was the country’s largest trading partner.
In 2021-22, the US $ 72.9 billion UAE was India’s third largest trading partner. It was followed by Saudi Arabia ($ 42.85 billion), Iraq ($ 34.33 billion) and Singapore ($ 30 billion).
