The United States has reportedly outpaced China to become the major partner of India in 2021-22, signifying robust economic ties between both countries.
As per data published by the commerce ministry, in 2021-22, the mutual trade between the United States and India stuck up to $119.42 billion compared to $80.51 billion in 2020-21.
In 2021-22, exports to the United States amplified to $76.11 billion from the previous year's recorded $51.62 billion; however, imports rose to around $43.31 billion compared to the $29 billion in 2020-21.
During 2021-22, the two-way commerce between India with China accumulated at $115.42 billion compared to the $86.4 billion in 2020-21, as shown by the data.
The exports to China enlarged marginally to $21.25 billion in the last financial year from $21.18 billion in 2020-21; however, the imposed rose to $94.16 billion from about $65.21 billion in 2020-21. The trade gap increased to $72.91 billion in 2021-22 from $44 billion in the preceding fiscal year.
Khalid Khan, Vice President of the Federation of Indian Export Administrations, said India is developing as a trusted trading partner. Firms globally are lowering their dependency only on China for their supplies and are expanding their businesses into other countries like India.
The mutual trade between India and other countries like the US is expected to grow in the coming years. India has joined a US-directed initiative to set up an Indo-Pacific Economic Framework (IPEF). This move will help economies boost and enhance these ties further, said Khan.
Furthermore, America is one of the countries which has a trade surplus with India. In 2021-22, India had a trade excess of $32.8 billion with the US.
According to recent data, China was one of the topmost trading partners of India from 2013-14 till 2017-18 and in 2020-21.
Before China, the UAE was the largest trading partner of the country.
Source Credit - https://www.business-standard.com/article/economy-policy/us-surpasses-china-as-india-s-biggest-trading-partner-in-fy22-at-119-42-bn-122052900144_1.html