Trade and commerce form a crucial component of the rapidly expanding and multi-faceted relations between India and US. From modest $ 5.6 billion in 1990, the bilateral trade in merchandise goods has increased to $ 48.75 billion in 2010 representing an impressive 771% growth in a span of 20 years.
India’s merchandise exports to the U.S. grew by 24.3% from $ 22.14 billion during the period Jan. – September 2010, to $ 27.52 billion in Jan. – September 2011.US exports of merchandise to India also grew by 12.7% from $ 14.18 billion during Jan. - September 2010 to $ 15.99 billion in Jan. – September 2011. India – US Bilateral Merchandise Trade stands at $ 43.51 billion during this period.
Trade during the periodJan. – September 2011
i) Major items of export from India to US
Select major items with their percentage shares, are given below.
a) Textiles (17.7%)
b) Precious stones & metals (22%)
c) Mineral fuel, oils (10.9%)
d) Pharmaceutical products (8.6%)
e) Organic chemicals (5.1%)
f) Machinery (4.8%)
g) Electrical machinery (4%)
h) Iron & Steel Products (3.4 %)
ii) Major items of export from US to India
Select major items with their percentage shares, are given below
a) Precious stones & metals (22.7%)
b) Machinery (13.5%)
c) Mineral fuel, Oil, etc. (8.9%)
d) Electrical machinery (7.1%)
e) Optical instruments & equipment (5.6%)
f)) Organic chemicals (4.3%)
g)Fertilizers (4.5%)
h) Plastic (3.7%)
Trends with respect to the major items of bilateral trade during the past two years are as follows.
India’s exports to US
·Cut and polished diamonds and jewelry is a major item of India’s exports to the US, accounting for 23.2%. Exports of this item increased from $ 4.56 billion in 2009 to $ 6.85 billion in 2010, an increase of 50.3%.
·Textiles exports accounted for 19.3% of India’s exports to the US in 2010. Textile exports grew from $ 4.86 billion in 2009 to reach $ 5.69 billion in 2010, an increase of 17.1%.
·Exports of pharmaceutical products grew from $ 1.66 billion in 2009 to $ 2.39 billion in 2010, an increase of 43.8%.
·Exports of mineral fuel, oil grew from $0.43 billion in 2009 to $ 2.32 billion in 2010, an increase of 437%.
·Exports of organic chemicals grew by 5.6% from $ 1.31 billion in 2009 to $ 1.72 billion in 2010.
US exports to India
·Exports of precious stones and metals which accounted for 21.9% of exports from US to India grew by 80% to reach $ 4.21 billion in 2010 from $ 2.34 billion in 2009.
·Machinery exports grew by 14.9% from $ 2.32 billion in 2009 to $ 2.67 billion in 2010.
·Exports of electrical machinery grew by 5.23% from $ 1.3 billion in 2009 to $1.37 billion in 2010.
·Exports of aircraft, aviation machinery and parts, fell by 43.3% to $ 1.28 billion in 2010 from $2.25 billion in 2009.
During the year 2007, the basket of US imports to India included exceptionally large imports of aircraft /parts, which resulted in a leap in the growth rate of US exports to 54.7%. With this component excluded, the growth rates of US exports in 2007 and 2008 are 37.5% and 39.9% respectively.
