Table 1: Comparison of India's goods trade with USA to India's total trade
Table 2: Top 10 US imports from India (goods)
Table 3: Top 10 US exports to India (goods)
Table 4: Comparison of India's services trade with USA to India's total trade
Table 5: Total India-US bilateral trade
Indo-US trade relations have undergone a massive change in the recent years. Once perceived as a less developed country, India had transformed itself into the fastest growing economies of the world currently. It is not hidden that India is world's fourth largest economy in purchasing power parity terms and US is the largest in GDP dollar terms. So both these Economic powers are poised to grow in terms of trade and investment.
Despite the slowdown in international markets, India has been exhuming confidence. India has economically and industrially advanced to a level from where further development can be accelerated even more. Within three decades, India is projected to have the world's third largest economy and more people than China.
Indo-US Trade in goods grown with a CAGR of 13.7% since 2001.While the US exports to India has become double from its 2001 value, the US import from India has grown to more than four times in the similar period. Also, there is clear effect of Recession in 2009 with both export and Import falling. Infact US exports to India has registered a sharp fall compared to its import from India. Infact 2009 is the only year where growth has been negative. The Major Indian Export to US includes Natural pearl, textiles, pharmaceutical products and electric machinery. The US exports to India are Nuclear reactor, aircraft and pearls.
Rising incomes in India will result in a strong growth of middle class consumer, thus creating opportunities for exporting US firms. The growth of India and other developing countries will benefit US with cheaper goods for its consumers, new markets for exporters, and faster growing investments for its savings. India will also be able to leverage its good relations with the US to access its huge market.
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