In today’s wired economic world, strong and beneficial bilateral trade relations with other countries (especially with countries having strong economic roots) are crucial to ensure availability of best goods and services and sustained economic growth of any nation (among other reasons).
In the last 3 decades since Indian economy was unshackled, all efforts continue to strengthen its economic relations with strong economies like United States, China etc., to ensure sustainable economic progress at regional and international level.
During the period (2013-14 till 2017-18 and also in 2020-21) China has been top bilateral trading partner for India. However, with change in momentum between economic relationships between India and United States, for financial year (2021-22) – United States has emerged as top trading partner for India, replacing China.
As per available reports, bilateral trade with United States is valued at $119.42 billion (exports $76.11 billion and imports $43.31 billion) for 2021-22 as against $80.51 billion (exports $51.62 billion and imports $29 billion)in 2020-21. Bilateral trade with China for years 2021-22 and 2020-21 stands at $115.42 billion and $86.4 billion in 2020-21 respectively. For 2021-22, United States (1st) and China (2nd) topped chart of bilateral trade followed by United Arab Emirates ($72.9 billion), Saudi Arabia ($42.85 billion), Iraq ($34.33 billion) and Singapore ($30 billion).
Another interesting factor is that India has surplus trade of $32.8 billion with United States, which makes United States one of few countries with whom India has a surplus trade.
The expectation is that Indo-US bilateral trade will further expand in the coming years. Following factors has significantly contributed to increasing bilateral trade between United States and India:
a) India joined Indo-Pacific Economic Framework (IPEF – A United States led initiative).
b) Constant engagement of both countries in trade to strengthen economic ties.
c) Emergence of India as an alternative option to China – As a reason global firms inclined towards having business relations with India to cut down dependence on China
d) India is third largest consumer market in the world
e) Most importantly, India and United States are nations with enormous potential to provide great business and economic opportunities for India and United States firms in the fields of technology, trade, pharma, investment etc.,
Source : The Times Of India
