Indo-US Trade likely to be US$ 100bn by 2018 : PHD Chamber

Indo-US Trade likely to be US$ 100bn by 2018 : PHD Chamber

Indo-US Trade likely to be US$ 100bn by 2018 : PHD Chamber

 

No.PR-183
January 23, 2015
New Delhi
 

Indo-US Trade likely to be US$ 100bn by 2018 : PHD Chamber
 

Pro-active initiatives undertaken by Mr. Modi led NDA government such as ‘Make in India’ and recent policy pronouncements to improve Ease of Doing Business would go a long way to re-fuel India’s growth story and amount to expanding its trade ties with India’s traditional partners, especially that of US, with which its trade is likely to touch US$100 billion mark by 2018, said Mr. Alok B. Shriram, President, PHD Chamber.
 

Of the total trade between the two, exports are projected to mark US$65bn and imports are projected to remain at around US$35bn by 2018, he said
 

Bilateral trade between India-US has grown rapidly since FY2000. Exports rose from US$9bn in FY2001 to around US$39bn in 2014. With this US remained India’s top export destination throughout the years, he said
 

Imports from US also registered a steep rise from US$3bn in FY2001 to around US$22bn in FY2014. Overall, bilateral trade between India and US rose five fold from US$12bn in FY2001 to US$62bn in FY2014, he added
 

Current State of India - USA Bilateral Trade (in US$bn)

Year

Exports

% Share in exports

Imports

% Share in imports

Total trade

% Share in total trade

Trade balance

FY2001

9.31

20.9

3.02

5.97

12.32

12.96

6.29

FY2005

13.77

16.47

7.00

6.27

20.77

10.65

6.76

FY2010

19.54

10.93

16.97

5.89

36.51

7.82

2.56

FY2014

39.14

12.45

22.51

5.0

61.65

8.06

16.64

 

Source: PHD Research Bureau, Compiled from Ministry of Commerce and Industry
 

India’s top ten export commodities to USA are precious stones, mineral fuels, pharmaceutical products, apparel, nuclear reactors and organic chemicals. India’s top ten import commodities from USA includes nuclear reactors, precious stones, aircraft, mineral fuels, electrical machinery and equipments, plastic items and ships and boats.
 

During 2000 to 2013, the cumulative FDI flows from the USA are estimated at around US $14billion constituting nearly 6% of the total FDI into India.
 

Defense trade has also shown significant growth in recent years vis-à-vis the signing of the ‘New Framework for India-US defense Relationship’ in June 2005. Going ahead, both the nations hold immense scope to upgrade technology transfer policies & co-development & co-operation of defense systems. Cooperation in the R&D activity should also be explored in the coming times.

 

Apart from sharing business and economic linkages both the nations share common interest in promoting global security, stability, and economic prosperity. Based on increasing convergence of interests on bilateral, regional and global issues, bilateral relations between India and US have been grown into a global strategic partnership over a period of time.

 

In US, Indian Diaspora is highly qualified, dedicated and loyal and their contribution to varied US economic sectors from agriculture to IT is commendable and well recognized.
 

I believe, the forthcoming visit of US President Mr. Barack Obama would further enhance economic and business linkages between India and US and lead to a win-win proposition for both in terms of improving investors’ confidence and accelerating economic growth, going forward, said Mr. Shriram
 

The new Government is pro-active and progressive for undertaking strategic initiatives for ease of doing business so as to provide conducive business environment to the prospective investors. This opens vast scope for the private sector for investments in various promising sectors of Indian economy.
 

Going ahead, we believe India-US trade relations will flourish and both the nations will progress in terms of increased economic expansion and enhanced trade & investments volumes, he said.
 

ENDS

Koteshwar Prasad Dobhal
Consultant (PR)