Before President Donald Trump's two-day visit to India, the US has achieved the title of being India's largest trade partner by beating China. Achieving this status in America shows the growing trade relations between India and America.
According to the Commerce Ministry data, there was bilateral trade between India and the United States of $ 87.95 billion in FY 2018-19. During the same period, India's bilateral trade with China stood at $ 87.07 billion.
Similarly, during April to December, India's bilateral trade with the US stood at $ 68 billion in the fiscal year 2019-20, while India and China had bilateral trade at $ 64.96 billion.
In this case, trade experts believe that this trend may continue in the future as India and the United States are trying to enhance economic relations. US President Donald Trump's two-day visit to India is considered important in this episode.
At the same time, an expert believes that bilateral trade will reach a different level if both countries enter into a Free Trade Agreement (FTA). Ajay Sahai, director-general of Confederation of Indian Export Organizations, said the FTA with the US would be highly beneficial for India, as the US is the largest market for Indian goods and services.
He said that both imports and exports of India are increasing with the US, while both imports and exports are falling with China facing the wrath of coronavirus. The US is one of the few countries with which the balance of trade tilt is in India's favor.
In the year 2018-19, India had a trade deficit of $ 53.56 billion with China, while India was in a trade gain of $ 16.85 billion with the US. According to the data, China has been India's largest trade partner from 2013-14 to 2017-18.
However, the United Arab Emirates had this status before China. Professor Rakesh Mohan Joshi at the Indian Institute of Foreign Trade said that India needs to be careful while entering into a free trade agreement with the US, as the US is the largest producer and exporter of commodities like corn and soybeans.
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