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Business India-US bilateral trade records robust growth in Dec
India-US bilateral trade records robust growth in Dec
PUBLISHED: 26 Jan 2025, 08:44 PM IST
LAST UPDATE: 26 Jan 2025, 08:44 PM IST
India-US bilateral trade records robust growth in Dec
India’s trade with the USA is on the upswing with robust growth being recorded in December in the bilateral exports of the two countries despite the disruption in shipping due to geopolitical tensions.
India’s merchandise exports to the USA shot up by 8.5 per cent to $7 billion in December, according to the official figures.
Similarly, US exports to India during December surged by close to 10 per cent to $3.77 billion. India’s top imports from the US included petroleum, petroleum products, coal, coke, and electric machinery and equipment.
A senior official pointed out that this shows that India is also providing a market for American goods and there is a two-way relationship in which both countries are benefiting from the gains of trade.
The bilateral trade between India and the US during the first nine months of the current financial year (April-December) 2024-25 touched 93.4 billion which comes close to the figure for India’s trade with China at $94.6 billion during this period.
India’s electronic exports to the US jumped by a robust 27.4 per cent to $22.5 billion in April-November of 2024-25, from $17.66 billion during the same period in 2023-24.
There has been continuous growth in the sector over the last two years as electronics exports from India to the US jumped over two-fold year-on-year to $6.6 billion during January-September 2023, industry body ICEA has said.
This jump in electronic exports has taken place after the sanctions imposed against China towards the fag-end of President Donald Trump’s first administration which was continued under Joe Biden.
With US companies such as tech giant Apple looking to set up supply chains outside China, India with its large domestic market has emerged as an alternative destination.
India’s electronics exports to the US increased by $7.9 billion, accounting for over 62 per cent of the increase in the trade surplus between the two countries.
Electronic goods have now moved up to the third position among the top performers in India’s export sector, next only to engineering products and petroleum, from the sixth position last year.
Within the electronics sector, smartphone exports have recorded a 45 per cent increase in exports as leading players such as Apple and Samsung expand production in the country.
Apple’s entry into India, supported by its vendors Foxconn, Pegatron, and Tata Electronics, has boosted smartphone exports this year. Exports of consumer electronics, solar modules, desktops, and routers have also recorded significant growth.
Electronics exports are expected to further accelerate ahead as semiconductor manufacturing capacities are now being set up in the country, the official said.
India’s apparel exports have also posted a double-digit growth of 11.6 per cent to $11.31 billion during April-December of the current financial year driven by demand in leading markets such as the US, the UK, and Germany.
The Apparel Export Promotion Council (AEPC) chairman Sudhir Sekhri said the robust growth and long-term outlook for Indian apparel exports remains positive, largely on account of improved product acceptance, adaptability to changing consumer trends, focus of factories on compliance besides industry-friendly policies of the government.
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