Trade and commerce form a crucial component of the rapidly expanding and multi-faceted relations between India and US. From modest $ 5.6 billions in 1990, the bilateral trade in merchandise goods has increased to $ 37.64 billion in 2009 representing an impressive 572% growth in a span of 19 years.
India’s merchandise exports to the U.S.A. grew by 38.1% from $ 8.57 billion during the period Jan-May 2009 to $ 11.83 billion in the corresponding period in 2010. US exports of merchandise to India also grew by 23.4%, from $ 6.1 billion during the period Jan- May 2009 to $ 7.5 billion in the corresponding period in 2010.
Source of data: U.S. Dept. of Commerce, Bureau of Census
Trade during the period Jan - May 2010
i) Major items of export from India to US
Select major items with their percentage shares, are given below.
a) Textiles (20.6%)
b) Precious stones & metals (22.9%)
c) Mineral fuel, oils (8.5%)
d) Pharmaceutical products (7.3%)
e) Organic chemicals (6.8%)
f) Electrical machinery (5.1%) g) Machinery (4.2%)
h) Iron / steel products (3.6%)
ii) Major items of export from US to India
Select major items with their percentage shares, are given below
a) Precious stones & metals (23.7%)
b) Machinery (13.6%)
c) Electrical machinery (7.6%)
d) Aircraft, spacecraft (7.0%)
e) Mineral fuel, Oil, etc. (6.4%)
f) Optical instruments & equipment (6.0%)
g) Organic chemicals (4.2%)
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 are a major item of India’s exports to the US, accounting for 21.5%. Exports of this item declined from $ 5.6 billion in 2008 to $ 4.6 billion in 2009.
·Textiles exports to the US, which account for 23%, fell by 10.3% from $ 5.42 billion in 2008 to $ 4.86 billion in 2009.
·Iron & Steel products which account for 5.3% of India’s exports to the US, fell by 33.8% from $ 1.68 billion in 2008 to $ 1.12 billion in 2009
·Exports of Organic Chemicals fell by 10.2% from 1.46 billion in 2008 to $ 1.32 billion in 2009.
·Exports of pharmaceutical products grew from $ 1.43 billion to in 2008 to $ 1.66 billion in 2009
US exports to India
·Exports of precious stones and metals from US to India, which account for 14.2%, fell from $ 2.55 billion in 2008 to $ 2.34 billion in 2009.
·Exports of fertilizers, which account for 7 % of US exports to India, fell sharply by 58.5% from $ 2.79 billion in 2008 to $ 1.16 billion in 2009.
·Exports of aircraft, aviation machinery and parts, which account for 13.7%, grew from $ 1.85 billion in 2008 to $ 2.25 billion in 2009.
·Machinery exports grew marginally from $ 2.32 billion in 2008 to $ 2.33 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.
