The United States of America (USA) surpassed China and became India’s biggest trading partner in FY22, reflecting a strong economic bond between the two countries.
The Commerce ministry’s data shows that bilateral trade between the US and India stood at $119.42 billion in 2022 while it was $80.51 billion in 2020-2021.
Exports to the US increased to 76.11% in 2021-22 from $51.62 billion in the previous fiscal year, while imports jumped up to $43.31 billion compared to 2021-2022, which was $29 billion in 2020-21.
India’s two-way commerce with China was marked at $115.42 billion during 2021-22 compared to $86.4 in 2020-21. Exports to China rose to $21.25 billion in FY22 from $21.18 billion in 2020-21. Talking about the imports, it rose to $94.16 billion from $65.21 billion in the fiscal year 2020-21. The overall trade gap increased to $72.91 billion in 2021-22 from $44 billion in the previous fiscal year.
Trade experts believe that the increasing bilateral trade with the US will continue in the upcoming year. Vice President of the Federation of India Export Organisation, Khalid Khan, said, “India is emerging as a trusted trade partner. The global firms are reducing their dependency on China for their supplies and are diversifying their business with countries like India”.
America is one of those countries which have shown its trust in India and has a trade surplus. In 2022, India had a trade surplus of $32.8 billion with the US.
From the fiscal years 2013-14 to 2017-18 and 2020-21, China was the top trading partner of India. Now the US has replaced China and got the first position.
Before Chine, UAE was the country’s largest trading partner. In the recent fiscal year, the UAE with $72.9 was counted in the third position, followed by Saudi Arabia with $42.85 billion and $34.33 billion and Singapore ($30 billion).
