India US Trade

USA is the 3rd largest investor in India with cumulative FDI inflows of US$ 65.19 billion from April 2000-March 2024.

Last updated: Aug, 2024

Introduction

India's largest trading partner is the US, and it is also one of the few countries with which India had a trade surplus in 2022-23. India's major exports to the US include gems and jewellery, pharmaceutical products, light crude oil and petroleum, electrical and electronics goods, engineering products, apparel, frozen marine products, and others.

India-USA Trade

Major exported items from India to the USA with amount & quantity

Major imported items by India from the USA with amount & quantity

Recent Trends & development

Bilateral Trade and Economic Relations

Rapidly expanding trade and commercial linkages between India and the US form an important component of the multi-faceted partnership between the two countries. Total bilateral trade (goods and services) between India and US increased at a CAGR of 11.5% from US$ 20 billion in 2000 to US$ 142 billion in 2018. In 2021, overall US-India bilateral trade in goods and services reached a record US$ 157 billion.

The US emerged as India's biggest trading partner in 2022-23 on account of increasing economic ties between the two countries. According to the provisional data of the Commerce Ministry, the bilateral trade between India and the US increased by 7.65% to US$ 128.55 in 2022-23 as against US$ 119.48 billion in 2021-22.

India-USA trade is likely to touch US$ 300 billion in 2026-27 from its current trade, a report released by industry body PHD Chamber of Commerce and Industry (PHDCCI) stated.

Many US companies view India as a critical market and have expanded their operations. Many Indian companies are investing in the US and adding value. According to a CII study released in April 2023 ,163 Indian companies invested over $40 billion in the US and created over 425,000 direct jobs.

The U.S. is one of the most favoured destinations of Indian students for higher education.

As of September 2023, there are 320,260 Indian students, mostly in graduate (Masters)

programs in STEM fields. As per the US State Department’s website, Indian students in the US contribute about US$ 7.7 billion annually to the US economy.

U.S.A is the 3rd largest investor in India, with cumulative FDI inflows of US$ 62.24 billion from April 2000-September 2023. In 2023, the U.S. Embassy and Consulates in India processed a record-smashing 1.4 million U.S. visas. Demand across all visa classes was unprecedented, with a 60% increase in applications compared to 2022.

Conclusion

India-U.S. trade relations have developed into a "global strategic partnership", based on shared democratic values, and increasing convergence of interests on bilateral, regional, and global issues. Despite the COVID-19 pandemic, India-U.S. cooperation witnessed intense engagement under various bilateral dialogue mechanisms in a wide range of areas including defence, security, health, trade, economic, science & technology, energy, and people-to-people ties.

Contacts

Partners

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