The US becomes India’s largest trading partner in 2021-22. Earlier China was the largest trading partner. This reflects the strong economic ties between the two countries. Trade experts believe that bilateral trade with the US will continue to grow in the coming years as India and the US continue to strengthen their economic ties.
According to commerce ministry data, the bilateral trade between the US and India stood at $119.42 billion in 2021-22. It was $80.51 billion in 2020-21. Exports to the US increased to $76.11 billion in 2021-22 from $51.62 billion in the previous fiscal. Imports increased to $43.31 billion in 2020-21 as compared to about $29 billion.
The data shows that during 2021-22, India’s bilateral trade with China grew to $115.42 billion from $86.4 billion in 2020-21. China exported $ 21.18 billion in 2020-21. It was $21.25 billion in the last financial year. At the same time, imports increased from about $ 65.21 billion to $ 94.16 billion in 2021-22. The trade gap widened to $72.91 billion in 2021-22 from $44 billion in the previous fiscal.
Khalid Khan, Vice President, Federation of Indian Export Organizations said, “India is emerging as a Trusted Trading Partner and global companies are reducing their dependence on China for their supplies and doing business in other countries like India.
In the coming years, bilateral trade between India and the US will continue to grow. India has joined the US-led initiative to establish an Indo-Pacific Economic Framework (IPF) and the move will help boost economic ties.
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 US. The data shows that from 2013-14 to 2017-18 and also in 2020-21, India’s top trade partner was China.
Before China, the UAE was the country’s largest trade partner. The United Arab Emirates was India’s third-largest trade partner with $72.9 billion in 2021-22. It is followed by Saudi Arabia ($42.85 billion), Iraq ($34.33 billion), and Singapore ($30 billion).