The United States (US) has now become India's top trading partner, with bilateral trade between the two countries in 2021-22 standing at $119.42 billion compared to $80.51 billion in the previous years.
With this, the US has surpassed China as India's top partner, according to the Commerce Ministry data, as China's bilateral trade with India was estimated at $115.42 billion.
India's exports to the US increased to $76.11 billion in 2021-22, compared to $51.62 billion in the previous fiscal year, while imports spiked to $43.31 billion compared to $29 billion in 2020-21.
According to the report, in 2021-22, India's bilateral trade with China amounted to $115.42 billion compared to $86.4 billion in 2020-21.
Export to China rose to $21.25 billion last fiscal year from $21.18 billion in 2020-21. On the other hand, imports spiked to $94.16 billion from about $65.21 billion in 2020-21. With the influx of new data, it is seen that the trade gap rose to $72.91 billion in 2021-22 from $44 billion in the previous fiscal year.
India Looking to Strenghten Ties With Washington
The report only affirms New Delhi's efforts to strengthen ties with Washington, with experts predicting stronger economic ties over time.
Khalid Khan, vice president of the Federation of Indian Export Organisation, has said that India has begun to emerge as a trusted trading partner, with global firms reducing their dependence on China for supplies as they continue to diversify with business investments in countries like India.
Speaking to PTI, Khan said: "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 (IPEF), and this move would help boost economic ties further," Khan said.
The US is only one of a few countries with which India is operating in a trade surplus, currently at $32.8 billion.
China was India’s top trade partner from 2013-14 to 2017-18 and again in 2020-21. Before this, the United Arab Emirates was India’s largest trading partner.
The UAE, with $72.9 billion, was India’s third-largest trading partner in 2021-22, followed by Saudi Arabia ($42.85 billion), Iraq ($34.33 billion), and Singapore ($30 billion).
(With inputs from PTI.)
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