In accordance with the data of the Ministry of Commerce and Industry, the United States (US) remained India’s top trading partner for the second consecutive fiscal in 2019-20 as bilateral trade between the US and India stood at USD 88.75 billion as against USD 87.96 billion in 2018-19.
- The trade gap between the countries has also increased to USD 17.42 billion in 2019-20 from USD 16.86 billion in 2018-19.
- On the other hand, the bilateral trade between India and China has dropped to USD 81.87 billion in 2019-20 from USD 87.08 billion in 2018-19. Trade deficit between the two nations have declined to USD 48.66 billion in 2019-20 from USD 53.57 billion in the previous fiscal.
- It should be noted that as per the study, the trend of widening Indo-US trade ties will continue in the coming years but with regards to China, India is considering to cut import dependence and boost domestic manufacturing.
Reason behind increasing Indo-US bilateral ties
Presence of Indian diaspora in the US is one of the main reasons for increasing bilateral trade.
Both nations are negotiating a limited trade pact with a view to remove differences at trade front and boost commercial ties.
- While India is seeking relaxation in US visa regime, exemption from high duties imposed by the US on certain steel and aluminium products, and greater market access for its products. On the other hand, the US wants greater market access for its farm and manufacturing products, dairy items, medical devices, and data localisation, apart from cut on import duties on some information and communication technology products.
-In 2018-19, the US first surpassed China to become India’s top trading partner.
-China was India’s top trading partner since 2013-14 till 2017-18. Before China, United Arab Emirates (UAE) was the country’s largest trading nation.
About Ministry of Commerce and Industry:
Union Minister– Piyush Goyal (Constituency- Maharashtra)
Minister of State (MoS)– Hardeep Singh Puri, Som Parkash