Besides, increasing political ties between the US and India, the two countries are also increasing economic ties. As for the second consecutive fiscal (2019-20), the US remained India’s leading trading partner.
As per the data given by the commerce ministry, in 2012-20 fiscal a total of $ 88.75 billion of trading took place from both the countries when compared to $87.96 billion during 2018-19.
The US is among the other few countries with which India shares a trade surplus. The trade gap between the US and India has hiked from $ 16.86 billion during 2018-19 to $17.42 billion during 2019-20, the data showed.
In 2018-19, the US- India trades surpassed China-India trades and became India’s leading trading partner.
The bilateral trade between India and China has decreased to $81.87 billion in 2019-20 against $87.08 billion in 2018-19. The trade deficit between the two countries has reduced to $48.66 billion during 2019-20 as against $53.57 billion during the last fiscal.
According to data, from 2013-14 till 2017-18, India’s leading trading partner was China. Before China, UAE was in the list of top trading partners.
At the same time, India is also taking several steps such as framing technical regulations and quality control orders for a host of items to cut import dependency on China. These steps will also help to boost indigenous manufacturing.
According to some trade experts, new widening trade traits can be observed between New Delhi and Washington. Both countries will in engaging and deepening the economic ties in the coming years.
India is also searching for relaxation in the US visa scheme. India is further seeking exemption from high duties imposed on steel and aluminium products by the US. The US can also provide great market access for Indian products especially from sectors like agriculture, automobile components automobile, and engineering.
At the same time, the US wants the Indian market access mainly for its farm, manufacturing products, medical devices, dairy items, and data localization.