Bilateral trade between India and the US reaches US$ 128.55 billion in FY23

Provisional data from the commerce ministry shows that bilateral trade between India and the US rose to US$ 128.55 billion in 2022-23, marking a 7.65% increase from the previous year’s US$ 119.5 billion and a significant rise from the US$ 80.51 billion in 2020-21. In 2022-23, India’s exports to the US reached US$ 78.31 billion, marking a growth of 2.81%, while imports rose by approximately 16% to US$ 50.24 billion. These figures highlight the strengthening economic ties between India and the US, with the latter becoming India’s largest trading partner.

Meanwhile, India’s bilateral trade with China dropped by around 1.5% to US$ 113.83 billion in 2022-23 from the previous year’s US$ 115.42 billion. Exports to China fell by about 28% to US$ 15.32 billion, whereas imports increased by 4.16% to US$ 98.51 billion. Consequently, the trade deficit widened to US$ 83.2 billion from the previous year’s US$ 72.91 billion.

Experts attribute this growth to increasing exports of goods such as pharmaceuticals, engineering, and gems and jewellery to the US. India provides significant trade opportunities for the US, being the world’s third-largest consumer market and the fastest-growing market economy. Major export items from India to the US include petroleum, polished diamonds, pharmaceutical products, jewelry, and frozen shrimp, while major imports from the US include petroleum, rough diamonds, liquefied natural gas, and gold.

Media reports said that India has a trade surplus of US$ 28 billion with the US, making it one of the few countries with which India has a trade surplus. 

Source: Economic Times