US becomes India's largest trading partner, surpassing China in FY 2021-22

Jun 21, 2022, 16:26 IST

India's trade exports to the United States increased from USD 51.62 billion in the previous fiscal year to USD 76.11 billion in FY 2021-2022 and imports increased from around USD 29 billion to USD 43.31 billion.

US becomes India's largest trading partner, surpassing China in FY 2021-22
US becomes India's largest trading partner, surpassing China in FY 2021-22

India's trade with US: The United States has become India's largest trading partner, as per Union Ministry of Commerce and Industry's latest data. India's bilateral trade with the US has touched USD 119.42 billion, exceeding India's trade with China.

India's trade exports to the United States increased from USD 51.62 billion in the previous fiscal year to USD 76.11 billion in FY 2021-2022 and imports increased from around USD 29 billion to USD 43.31 billion.

China was India's largest trading partner from 2013-2014 to 2017-2018 and 2020-2021,as per Chinese data. Besides China, the United States and the United Arab Emirates were India's largest trading partners.

India's trade with US

Major Indian Exports to US- Jewellery, polished diamonds, pharmaceutical products, jewellery, light oil and petroleum, frozen shrimp, cosmetics and more. 

Major Indian Imports from US- Oil, liquefied natural gas, coal, gold, recycled products and scrap iron, large almonds etc.

India's trade with China

India's bilateral trade with China also increased by about 1/3 from USD 86.4 billion in the previous fiscal to USD 115.42 billion in fiscal year 2021-2022. 

India's exports to China are about USD 21.25 billion and imports are about USD 94.16 billion. The trade volume of imported goods from China have also been increasing with top 100 imported items each having an import value of more than USD 100 million. This shows that India is still dependent on China for imports of manufactured goods.

There are differences in trade volumes in the statistical data of China and India.

India's trade partners

This is not the first time that the US has become India's largest trading partner. Since a long time, there has been a large trade deficit between China and India, while India has maintained a trade surplus with the US. Hence India has always regarded the US as an important export market.

Why are Indian imports from the US increasing?

  • Indian imports from China largely range from small screws, utensils, bags, shoes, hats, decorative flowers to refrigerators, large TVs, mobile phones and other consumer electronics. These products are of high quality and low price and mostly unmatched by other countries. 
  • While, Indian imports from China are mostly manufacturing products, Indian imports from the US are mostly energy and agricultural products.
  • However, the US is dominating in more emerging information fields such as e-commerce Amazon, social media Facebook, Twitter and WhatsApp and search engine Google.
  • While India has increased its focus on substituting Chinese products, India-US trade relations are continuously strengthening. 

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Sangeeta Nair is a news professional with 6+ years of experience in news, education, lifestyle, research and videos. She has a bachelors in History and Master in Mass Communication. At jagranjosh.com, she writes on Current Affairs. She can be reached at sangeeta.nair@jagrannewmedia.com.
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