India-US trade rose by 8% in 2022-23 and fell 15% with China
India’s trade with the US increased by 8% to $94.7 billion in 2022-23 from $87.5 billion in the previous fiscal, according to data from the Ministry of Commerce and Industry. However, during the same period, India’s trade with China declined by 15% to $77.7 billion from $91.7 billion. The data suggests that the Indian government's efforts to strengthen its economic ties with the US have been successful, while its relations with China have been strained.
Trade with the US
In 2022-23, the US was India’s second-largest trading partner, accounting for 13.2% of India’s total trade. India’s exports to the US rose by 12% to $54.4 billion, while imports increased by 4% to $40.3 billion.
The top Indian exports to the US were pharmaceuticals, diamonds, and jewelry, while the main US exports to India were petroleum products, machinery, and gold. The increase in trade between India and the US is expected to continue in the coming years as both countries have expressed their commitment to strengthening their economic ties.
Trade with China
In 2022-23, China was India’s third-largest trading partner, accounting for 10.8% of India’s total trade. India’s exports to China declined by 16% to $20.7 billion, while imports fell by 14% to $56.9 billion.
The top Indian exports to China were organic chemicals, iron ore, and cotton, while the main Chinese exports to India were machinery, electrical equipment, and organic chemicals. The decline in trade between India and China can be attributed to the border tensions between the two countries, which led to a decrease in bilateral trade and investment.
Future prospects
India is currently in the process of negotiating a free trade agreement (FTA) with the US, which could further boost trade between the two countries. The two sides have already held several rounds of talks on the matter and have expressed their willingness to conclude the negotiations as soon as possible.
On the other hand, India’s relations with China remain tense, with both countries continuing to engage in a border standoff. However, there have been some positive developments in recent months, with the two sides agreeing to disengage their troops from the border area. If the tensions between India and China ease in the coming months, it could lead to an increase in bilateral trade.
Conclusion
India’s trade with the US has been growing steadily in recent years, while its trade with China has declined due to border tensions. The Indian government is committed to strengthening its economic ties with the US, and negotiations for a free trade agreement are underway. However, India’s relationship with China remains tense, and it remains to be seen how the situation will develop in the coming months.
