US ‘trumps’ China as India’s biggest trading partner at $87.95 billion

While American President Donald Trump’s two-day visit to  India is grabbing eyeballs, the latest data from the Ministry of Commerce shows that the US has surpassed China to become India’s largest trade partner. The bilateral trade between India and the US stood at $87.95 billion in 2018-19, the data revealed.
The bilateral trade between India and China stood at $87.07 billion in 2018-19.

According to the commerce ministry, during April-December 2019-20, the bilateral trade between US and India stood at $68 billion, compared to $64.96 billion with China in the same period.China was India’s top trading partner since 2013-14 till 2017-18. Before China, UAE was the country’s largest trading nation. America is also one of the few countries with which India has a trade surplus. On the other hand, India has a huge trade deficit with China. In 2018-19, India has a trade surplus of $16.85 billion with US, while it has a deficit of $53.56 billion with China.

And against the backdrop of Coronavirus outbreak and the visit of the US president to India, experts believe that US will continue to remain the largest trading partner of India in the coming years.

“A trade deal between the US and India would further increase the trade between the two countries easing tariff restriction and opening up of bigger market for products. India is a major exporter of steel, steel products and aluminium products with combined exports of $ 22.7 billion last year,” Rakesh Mohan Joshi, Professor at Indian Institute of Foreign Trade said.

And as India and US were already negotiating a limited trade pact, experts claim there is bleak chance of it to be signed during Trump’s visit, beginning February 24.

India is demanding cut in visa fees, exemption from high duties imposed by the US on certain steel and aluminium products, and greater market access for its products from sectors such as agriculture, automobile, automobile components and engineering.

The US wants greater market access for its farm and manufacturing products, dairy items, medical devices, and data localisation, apart from cut on import duties on some information and communication technology products. 

• $68 billion was the size of US-India trade in Apr-Dec 2019-20
• $64.96 billion was India’s trade with  China in the period 
• $87.95 billion worth trade between US and India in 2018-19