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US becomes India’s largest trading partner for FY22;  Surpasses China

The United States has overtaken China to become India’s top trading partner in 2021-22, reflecting the strengthening economic ties between the two countries. According to Commerce Department data, in 2021-22, two-way trade between the United States and India stood at USD 119.42 billion compared to USD 80.51 billion in 2020-21.

Exports to the United States increased to USD 76.11 billion in 2021-22 from USD 51.62 billion in the previous fiscal year, while imports reached USD 43.31 billion from around 29 billion USD in 2020-21. In 2021-22, India’s two-way trade with China stood at $115.42 billion compared to $86.4 billion in 2020-21, according to the data.

Exports to China increased slightly to $21.25 billion in the last fiscal year from $21.18 billion in 2020-21, while imports jumped to $94.16 billion from around $65.21 billion. USD in 2020-21. The trade deficit increased to USD 72.91 billion in 2021-22 from USD 44 billion in the previous fiscal year. Trade experts believe that the trend of increasing two-way trade with the United States will continue in the coming years as well, as New Delhi and Washington pledge to further strengthen their economic ties.

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The Vice President of the Federation of Indian Export Organizations, Khalid Khan, said India was emerging as a trusted trading partner and global companies were reducing their dependence solely on China for their supplies and diversified their activities in other countries such as 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 move would help to further strengthen economic ties,” he added. Khan said.

Rakesh Mohan Joshi, Director, 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 market economy at the forefront. fastest growing with an unparalleled demographic dividend offers huge opportunities for US and Indian companies for technology transfer, manufacturing, trade and investment.

“India’s main export products to the United States include petroleum-based polished diamonds, pharmaceuticals, jewellery, light oils and petroleum, frozen prawns, makeups, etc., while that major imports from the United States include petroleum, rough diamonds, liquefied natural gas, gold, coal, waste and scrap metal, almonds, etc,” Joshi said.

America is one of the few countries with which India has a trade surplus. In 2021-2022, India had a trade surplus of $32.8 billion with the United States.

The data showed that China was India’s top trading partner from 2013-14 to 2017-18 and also in 2020-21. Prior to China, the United Arab Emirates was the country’s largest trading partner. In 2021-2022, the United Arab Emirates, with $72.9 billion, was India’s third largest trading partner. It was followed by Saudi Arabia (42.85 billion USD), Iraq (34.33 billion USD) and Singapore (30 billion USD).

First post: STI

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