India and the US are set to witness a significant boost in their trade relations, with trade expected to reach $300 billion by 2026-27. This marks a substantial increase from the current trade value of $188 billion in 2022-23, reflecting a 60% rise. These projections are outlined in a report titled The India-US Bilateral Relations: Steady Strides into the Future, produced by the Research Bureau of the PHDCCI industry body.
According to the report, the volume of exports from India to the US, combining merchandise and services, has already increased from $82 billion in 2018-19 to $111 billion in 2022-23. Similarly, the volume of imports from India to the US has risen from $58 billion in 2018-19 to $76 billion in 2022-23.
The strong economic partnership between India and the US extends beyond trade. As the world’s two largest democracies, they collaborate closely on matters of global economic prosperity and share common interests. This is evident in their strong bilateral cooperation in forums such as the G20, Quad, and Indo-Pacific Economic Framework for Prosperity (IPEF), highlighting the depth of their engagement.
To further strengthen the ties between the two countries, Indian Prime Minister Narendra Modi recently visited the United States from June 21-23, 2023. During his visit, several key takeaways emerged, including co-production of jet engines for the Indian Air Force, defense industrial collaboration, cooperation in the space sector, partnership in the semiconductor supply chain, innovation collaboration, and advancements in Artificial Intelligence technology. These areas of cooperation underline the commitment of both nations to forging a productive and mutually beneficial partnership.
The projected growth in India-US trade highlights the significance of this partnership in driving economic progress for both countries. As India continues to emerge as a global economic powerhouse and the US remains a key player in international trade, the expansion of trade ties between the two nations is poised to unlock new opportunities and drive economic growth. With a shared vision of bolstering global economic prosperity, India and the US are well-positioned to collaborate effectively and leverage the immense potential of their economic partnership.
In conclusion, the future of India-US trade looks promising, with trade expected to touch $300 billion by 2026-27. The growing economic partnership between the two nations, supported by strong bilateral cooperation, presents immense opportunities for mutual growth and prosperity. As both countries continue to deepen their engagement across various sectors, the stage is set for a thriving trade relationship that will further strengthen the longstanding ties between India and the US.
