India-US Trade and Investment India U.S. Relations

India-US Trade and Investment

India-US Trade and Investment

Bilateral Trade

Rapidly expanding trade and commercial linkages between India and U.S. form an important component of the multi-faceted partnership between the two countries. Total bilateral trade (goods and services) between India and US increased at a CAGR of 11.5% from $20 billion in the year 2000 to $142 billion in the year 2018. In this period, the growth in bilateral trade was accelerated by services trade, which grew at a CAGR of 13.4%. Goods trade grew at a CAGR of 10.6%. During the year 2018, goods trade contributed to 61.6% and trade in services contributed to 38.4% of the total India-US bilateral trade of $142 billion.

Goods Trade: Starting from a modest $14 billion in 2000, the bilateral trade in goods has increased to $87.5 billion in 2018 (CAGR of 10.6%), making U.S. our second largest trading partner. Of this, India exported $54.4 billion to US and imported $33.12 billion from US. Trade in goods during the year 2018 was $87.53 billion as compared to $74.33 billion during the year 2017, which is an increase of 17.8%. During the period January –October 2019, trade in goods grew by 5% to $ 77.5 billion from $ 73.8 billion during the corresponding period in 2018.

Trade in Services: Bilateral trade in services has grown at a very fast pace since the year 2000, increasing from a mere $6 Billion in 2000 to $54.6 billion in the year 2018 (CAGR of 13.1%). Of this, India’s exports of services to the U.S. were valued at $28.8 billion and India's imports of services from US were valued at $25.8 billion. Trade in Services during the year 2018 was $ 54.56 billion as compared to $51.9 billion during 2017, which is an increase of 5.2%. During the period January – Sept 2019, trade in services grew by 1.5% to 41.47 billion from $ 40.85 billion during the corresponding period in 2018.

 

 

 

India US Trade in Goods ($ Billions)

 

2013

2014

2015

2016

2017

2018

India's exports to US

41.8

45.4

44.8

46.0

48.6

54.4

% change

3.2

8.5

-1.2

2.8

5.7

11.9

India’s imports from US

21.8

21.5

21.5

21.7

25.7

33.1

% change

-1.3

-1.4

-0.2

0.9

18.7

28.9

India US Trade in Goods

63.6

66.9

66.3

67.7

74.3

87.5

% change

1.6

5.2

-0.9

2.1

9.8

17.8

India - US Trade in Services ($ Billions)

 

2013

2014

2015

2016

2017

2018

India's exports to US

20.4

22.4

24.6

25.8

28.1

28.8

% change

8.5

9.8

9.8

4.9

8.9

2.2

India’s imports from US

13.3

15.2

18.4

20.6

23.7

25.8

% change

8.1

14.3

21.0

12.0

15

8.6

India - US Trade in Services

33.7

37.6

43.0

46.4

51.9

54.6

% change

8.4

11.6

14.4

8.0

11.6

5.2

India – US Total Bilateral Trade ($ Billions)

 

2013

2014

2015

2016

2017

2018

India's exports to US

62.2

67.8

69.4

71.8

77.3

83.17

% change

4.9

9.0

2.4

3.5

7.7

7.6

India’s imports from US

35.1

36.7

39.6

42.2

48.8

58.92

% change

2.0

4.6

7.9

6.6

15.6

20.7

India – US Total Bilateral Trade

97.3

104.5

109.0

114.0

126.1

142.09

% change

3.8

7.4

4.3

4.6

10.6

12.7

Source: US Department of Commerce, US Census Bureau and US Bureau of Economic Analysis

 

5 Year Trend Analysis of the Top Ten Export items of India to US

5 Year Trend Analysis of the Top Ten import items of India from US

Source of Data: U.S. Department of Commerce, Bureau of Census

 

Bilateral Trade Trends during 2019

India's Exports to the U.S. - Top 10 Items
January – Oct 2019

 HS Code

Commodity

US $ Million

% Share

% Change 2019/2018

71

Nat Etc Pearls, Prec Etc Stones, Pr Met Etc; Coin

9165

18.75

-7.58

30

Pharmaceutical Products

6419

13.13

21.33

27

Mineral Fuel, Oil Etc.; Bitumin Subst; Mineral Wax

3212

6.57

8.75

84

Nuclear Reactors, Boilers, Machinery Etc.; Parts

3108

6.36

11.98

29

Organic Chemicals

2374

4.86

16.24

87

Vehicles, Except Railway Or Tramway, And Parts Etc

2276

4.66

-2.81

63

Textile Art Nesoi; Needlecraft Sets; Worn Text Art

2150

4.4

1.55

62

Apparel Articles And Accessories, Not Knit Etc.

1911

3.91

5.2

03

Fish, Crustaceans & Aquatic Invertebrates

1784

3.65

4.82

61

Apparel Articles And Accessories, Knit Or Crochet

1667

3.41

7.46

Source of Data: U.S. Department of Commerce, Bureau of Census

 

India’s Imports from the U.S. - Top 10 Items
January - Oct 2019

 HS Code

Commodity

US $ Million

% Share

% Change 2019/2018

27

Mineral Fuel, Oil Etc.; Bitumin Subst; Mineral Wax

7026

24.55

26.51

71

Nat Etc Pearls, Prec Etc Stones, Pr Met Etc; Coin

5336

18.64

-21.15

88

Aircraft, Spacecraft, And Parts Thereof

2039

7.12

-4.5

84

Nuclear Reactors, Boilers, Machinery Etc.; Parts

2011

7.03

13.39

29

Organic Chemicals

1622

5.67

31.41

90

Optic, Photo Etc, Medic Or Surgical Instrments Etc

1298

4.54

0.67

85

Electric Machinery Etc; Sound Equip; Tv Equip; Pts

1280

4.47

0.79

39

Plastics And Articles Thereof

798

2.79

4.62

08

Edible Fruit & Nuts; Citrus Fruit Or Melon Peel

688

2.4

0.89

38

Miscellaneous Chemical Products

628

2.2

6.68

Source of Data: U.S. Department of Commerce, Bureau of Census

 

Bilateral Investments

Indian data:

As per FDI statistics released by The Department for Promotion of Industry and Internal Trade, Government of India, the U.S. is the sixth largest source of foreign direct investment into India. The cumulative FDI inflows from the US during April 2000 to June 2019 amounted to $ 27.01 billion constituting 6% of the total FDI inflows into India. During the current fiscal year, for the period April 2019 – June 2019, FDI from US stood at $ 1.46 billion. As per a report released in November 2017 by Confederation of Indian Industries (CII) titled "Indian Roots, American Soil", Indian investment in US amounts to $18 billion, based on a survey of 100 Indian companies across 50 states in US for this report.

US data:

U.S. FDI into India as on year 2018 amounted to $ 45.98 billion, whereas Indian FDI into the US amounted to $ 13.73 billion.

As on December 17, 2019

Contact Details

For trade related queries

Ms. Anubha Chopra

Email: com1(dot)washington@mea(dot)gov(dot) in

Telephone: 202-939-9834

 

For all other and general queries:

Mr. Anshul Sharma

Counsellor (Commerce)

Email: ccom(dot)washington@mea(dot)gov(dot) in

Telephone: 202-939-9808