The US has surpassed China to become India’s top trading partner in 2021-22, according to the data of the commerce ministry. The India-US bilateral trade stood at $119.42 billion, a sharp jump from $80.51 billion in 2020-21.
India’s exports to the US grew from $51.62 billion in 2020-21 to $76.11 billion in 2021-22. Similarly, imports rose from about $29 billion to $43.31 billion over the same period.
India-China trade also grew during the period but with a lower rate, from $86.4 billion in 2020-21 to $115.42 billion in 2021-22. India’s export to China increased only marginally, from $21.18 billion to $21.25 billion in 2021-22. Imports jumped from about $65.21 billion in 2020-21 to $94.16 billion in 2021-22.
India’s trade deficit with China continued to grow, from $44 billion in 2020-21 to $72.91 billion in 2021-22. The US is, however, one of the few countries with which India has a trade surplus. In 2021-22, India recorded a positive trade balance of $32.8 billion with the US.
China was India’s top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before that the UAE was the country’s largest trading partner. The UAE was the third largest trading partner of India in 2021-22 with $72.9 billion of trade, followed by Saudi Arabia ($42,85 billion), Iraq ($34.33 billion) and Singapore ($30 billion).
With the ongoing geo-strategic churning that is witnessing economic and strategic realignment, Trade experts believe that the trend of increasing India-US bilateral trade will continue in the coming years. Several top global firms are reducing their overwhelming dependence on China for business. During 2021-22, India’s two-way commerce with China aggregated at $115.42 billion as compared to $86.4 billion in 2020-21, the data showed.
Exports to China marginally increased to $21.25 billion last fiscal year from $21.18 billion in 2020-21, while imports jumped 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 2021-22, the UAE with $72.9 billion, was the third largest trading partner of India. It was followed by Saudi Arabia ($42,85 billion), Iraq ($34.33 billion) and Singapore ($30 billion).
“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. America is one of the few countries with which India has a trade surplus. In 2021-22, India had a trade surplus of $32.8 billion with the US. —With PTI