Exports to the United States increased by 2.81% to $78.31 billion in 2022-23, compared to $76.18 billion in 2021-22, while imports increased by approximately 16% to $50.24 billion, according to the data.
In contrast, India's two-way trade with China fell by around 1.5% in 2022-23, to $113.83 billion from $115.42 billion in 2021-22.
Exports to China fell by almost 28% to $15.32 billion in 2022-23, while imports increased by 4.16% to $98.51 billion in the previous fiscal year. The trade deficit increased to $83.2 billion in the last fiscal year, up from $72.91 billion in 2021-22.
Experts anticipate that the trend of rising bilateral commerce with the United States would continue in the future years, as New Delhi and Washington work to enhance their economic connections.
According to A. Sakthivel, President of the Federation of Indian Export Organisations (FIEO), rising exports of items such as pharmaceuticals, engineering, gems, and jewellery are assisting India in pushing its shipments to America.
"The trend of increasing trade with the United States will continue in the coming months," he said.
According to FIEO Vice President Khalid Khan, India is growing as a trustworthy trading partner, and global corporations are lowering their reliance on China for supply and expanding into other nations such as India.
"Bilateral trade between India and the United States will continue to grow as our exporters receive favourable orders from that country," Khan said.
Rakesh Mohan Joshi, Director of the Indian Institute of Plantation Management (IIPM), Bangalore, agreed that India offers significant trade potential for the United States because it is the world's third-largest consumer market and the fastest developing market economy.
"Major exports from India to the United States include petroleum, polished diamonds, pharmaceutical products, jewellery, light oils and petroleum, frozen prawns, made-ups, and so on," Joshi explained. "Major imports from the United States include petroleum, rough diamonds, liquefied natural gas, gold, coal, waste and scrap, almonds, and so on."
One of the few countries with whom India maintains a trade surplus is the United States. In 2022-23, India had a trade surplus with the United States of $28 billion.
According to the data, China was India's biggest trading partner from 2013-14 to 2017-18, as well as in 2020-21. Prior to China, the UAE was the country's most important commercial partner.
In 2022-23, the UAE was India's third largest trading partner, at $76.16 billion. Following it were Saudi Arabia ($52.72 billion) and Singapore ($35.55 billion).
