India and the United States have fostered a robust trading relationship, with the US being India's largest export destination and second-largest trading partner after China. Over the last ten years, there has been a notable surge in trade between these two major economies, with India's total trade with the US increasing by 92% to $118.3 billion in FY24. The consistent growth in exports to the US, reaching $77.5 billion in FY24 from $39.1 billion in FY14, underscores the strong trade ties between the two nations.
The dynamics of India's exports to the US have shown resilience and diversification. In the year 2023-24, India's exports were valued at $77.5 billion, featuring a range of sectors. Engineering goods emerged as the top category, bringing in $16.3 billion, followed by chemicals at $12.8 billion. Noteworthy contributions also came from electronic goods, gems and jewelry, and petroleum products, highlighting the vast array of Indian exports entering the US market.
On the other hand, India's imports from the US have displayed fluctuations, with a slight decline seen in FY24 to $40.76 billion compared to the previous year. Despite this drop, India's imports have shown significant growth over the past decade, surging by 82% to $40.76 billion in FY24 from $22.4 billion in FY14. The main imports from the US in FY24 included engineering goods, petroleum products, ores and minerals, chemicals, electronic goods, and pearls, reflecting the diversified nature of India's imports from the US.
Looking ahead, both India and the US are poised for substantial growth in bilateral trade, with estimates suggesting a surge to nearly $500 to $600 billion by 2030. The US's focus on diversifying its supply chains and India's strengths in technology and innovation, particularly in sectors like IT, AI, and semiconductors, are expected to drive this growth. However, the outcomes of US election results will play a crucial role in shaping the future trajectory of India-US trade relations, making it an area of keen interest and observation for both countries.