US surpasses China as India’s biggest trading partner
NEW DELHI: The US surpassed China to become India’s top trading partner in 2021- 22, reflecting strengthening economic ties between the two countries. According to the data of the commerce ministry, in 2021- 22, the bilateral trade between the US and India stood at $119.42 billion against $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 year, while imports rose to $43.31 billion as compared to about $29 billion in 2020-21.
During 2021-22, India’s twoway commerce with China aggregated at $115.42 billion as compared to $86.4 billion in 2020-21, the data showed.
Exports to China rose to $21.25 billion last fiscal year from $21.18 billion in 2020-21, while imports rose to $94.16 billion from about $65.21 billion in 2020-21. Trade gap rose to $72.91 billion in 2021-22 from $44 billion in previous fiscal year.
Trade experts believe that the trend of increasing bilateral trade with the US will continue in the coming years also as New Delhi and Washington are engaged in further strengthening the economic ties.
Federation of Indian Export Organisations’ vice president Khalid Khan said India is emerging as a trusted trading partner and global firms are reducing their dependence only on China for their supplies and are diversifying business into other countries like India. “In the coming years, the bilateral trade between India and the US will continue to grow. India has joined a US-led initiative to set up an Indo-Pacific Economic Framework and this move would help boost economic ties further,” Khan said.
Rakesh Mohan Joshi, director of IIPM, Bangalore, too said India is home to 139 crore people with the world’s third largest consumer market and the fastest growing economy with unparalleled demographic dividend provides enormous opportunities for the US and Indian firms for technology transfer, manufacturing, trade and investment.