USA emerged as India’s biggest trading partner

17/04/2023

Table of Contents

USA emerged as India’s biggest trading partner

The US has replaced China and emerged as India’s biggest trading partner for the financial year 2022-23 due to the increasing economic ties between the two countries.

The bilateral trade between India and the US has jumped by 7.65 per cent to USD 128.55 in 2022-23 as against USD 119.5 billion in 2021-22, as per the provisional data of the commerce ministry.

Export-Import with USA:

India exported products and services to the USA of amount to USD 78.31 billion in 2022-23 as against USD 76.18 billion in 2021-22. Imports to the US also hiked by about 16 per cent to USD 50.24 billion.

Experts hoping that the trend of increasing bilateral trade with the USA might be continued in the coming years as New Delhi and Washington are engaged in further strengthening the economic ties.

Export-Import with China:

If we talk about trade between India-Chian, India’s two-way commerce with China slumped by to USD 113.83 billion as against USD 115.42 billion in 2021-22.

Exports to China dimmed by about 28 per cent to USD 15.32 billion in 2022-23 but imports to China was grew by 4.16 per cent to USD 98.51 billion in the last fiscal.

Thus trade gap extended to USD 83.2 billion in the 2022-23 as against USD 72.91 billion in 2021-22.

Advantages for India:

As per the experts, increasing exports of goods such as pharmaceutical, engineering and gems and jewellery is facilitating India to push its shipments to America.

India has few countries with which it has a trade surplus and USA is one of them. India registered a trade surplus of USD 28 billion with the USA in 2022-23.

As per the history of trading, China was India’s top trading partner since 2013-14 till 2017-18 and also in 2020-21.

The UAE was India’s largest trading partner before China, but currently the UAE was the third largest trading partner of India with USD 76.16 billion.

India’s fourth and fifth biggest trading partner in FY2022-23 was Saudi Arabia (USD 52.72 billion), and Singapore (USD 35.55 billion) respectively.