The United States (US) has emerged as India's biggest trading partner in 2022-23 on account of increasing economic ties between the two countries.
Key highlights of the data
According to the provisional data of the commerce ministry, the bilateral trade between India and the US has increased by 7.65 per cent to USD 128.55 in 2022-23 as against USD 119.5 billion in 2021-22. It was USD 80.51 billion in 2020-21.
Exports to the US rose by 2.81 per cent to USD 78.31 billion in 2022-23 as against USD 76.18 billion in 2021-22, while imports grew by about 16 per cent to USD 50.24 billion, the data showed.
On the other hand, during 2022-23, India's two-way commerce with China declined by about 1.5 per cent to USD 113.83 billion as against USD 115.42 billion in 2021-22.
China was India's top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country's largest trading partner.
What led to this development?
The increasing exports of goods such as pharmaceuticals, gems and jewellery were helping India to push its shipments to America.
Furthermore, India is emerging as a trusted trading partner and global firms are reducing their dependence on China for their supplies and are diversifying business into other countries like India.
India has joined a US-led initiative to set up an Indo-Pacific Economic Framework (IPEF) and this move would help boost economic ties further.
The US has consistently been India’s largest market for services exports, but the recent overseas sales of merchandise goods to that country overtook China, making it the largest bilateral trading nation of India.
India-US CEO Forum:
The U.S.-India CEO Forum was created in July 2005. The Forum is a true public-private endeavour to enhance bilateral trade and investment.
This is the sixth time the Forum has been convened since its reconstitution in 2014.
The Department for Promotion of Industry and Internal Trade (DIPP) is the nodal department for the Forum.