With $128.55 billion in trade, the US surpasses China as India’s top trading partner in FY23

According to preliminary figures from the commerce ministry, the US surpasses China as India’s top trading partner because bilateral trade between India and the US expanded by 7.65% to $128.55 billion in 2022–23 from $119.5 billion in 2021–22.

The United States is expected to overtake China as India’s top trading partner in 2022–2023, supported by growing economic connections. According to preliminary data from the commerce ministry, bilateral trade between India and the US climbed by 7.65% to $128.55 billion in 2022–23 from $119.5 billion in 2021–22, according to news agency PTI.

In 2020–21, it was $80.51 billion:

According to the data, imports increased by almost 16% to $50.24 billion while exports to the US increased by 2.81 percent to $78.31 billion in 2022–23 from $76.18 billion in 2021–22. India’s two-way trade with China fell from $115.42 billion in 2021–2022 to $113.83 billion in 2022–2023—a decrease of nearly 1.5%.

In 2022–2023, Indian exports to China fell by nearly 28% to $15.32 billion, while imports increased by 4.16 percent to $98.51 billion. The trade deficit increased from $72.91 billion in 2021–2022 to $83.2 billion in the most recent fiscal year. According to experts, the trend of growing bilateral commerce with the US would continue in the years to come as New Delhi and Washington work to further cement their economic connections.

According to A Sakthivel, president of the Federation of Indian Export Organisations (FIEO), rising exports of products like pharmaceuticals, engineering, gems, and jewelry are assisting India in pushing its shipments to America. According to the PTI article, he stated that “the trend of increasing trade with the US will continue in the coming months also.”

The third-largest consumer market in the world and the market economy with the quickest growth rate is India, according to Rakesh Mohan Joshi, director of the Indian Institute of Plantation Management (IIPM), Bangalore.

One of the few nations with whom India maintains a trade surplus is interestingly America. India had a $28 billion trade surplus with the US in 2022–2023.

According to the data, China has been India’s top trading partner since 2013–14 and will continue to be so in 2020–21. The UAE was the nation’s biggest trading partner before to China.

With a trade surplus of $76.16 billion, the UAE was India’s third-largest trading partner in 2022–2023. Singapore ($35.55 billion) and Saudi Arabia ($52.72 billion) came next.