America is India’s largest trading partner, an increase of $ 48 billion in two years

India US Relations: Mutual relations between India and America are getting stronger and in the last few years trade has emerged as the mainstay. The White House is engaged in further strengthening mutual relations.

The figures of the Ministry of Commerce for 2022-23 have come out. This shows that America has become our biggest trading partner in 2022-23. During this, the bilateral trade between India and America reached $128.55 billion. These figures are enough to tell that the economic relations between the two countries are continuously getting stronger.

$48 billion increase in trade in two years

Bilateral trade between India and America has increased by 7.65% during the financial year 2022-23. In the previous financial year i.e. 2021-22, the mutual trade was $ 119.5 billion. Whereas in 2020-21, this figure was only $ 80.51 billion. As with these figures, the way the economic relations between India and America have strengthened in the last two years, it has never been seen before. In the last two years, mutual trade has increased by $ 48 billion.

balance of trade in favor of india

There has been an increase of 2.81% in exports from India to America during 2022-23 as compared to last year. The export figure stood at $78.31 billion. During this period, imports from America to India have also increased by 16%. The import figure stood at $50.24 billion. If we look at these figures, it is known that the trade relations are in favor of India because we export more to America than imports.

China is India’s second largest trading partner

America has overtaken China in trade partnership with India. China is the second largest trading partner of India. While trade relations with the US have strengthened in 2020-23, there has been a decline of 1.5% in India-China trade during this period. In the financial year 2022-23, trade between India and China was reduced to $ 113.83 billion. In the last year i.e. 2021-22, this figure was $ 115.42 billion. Talking about trade balance, exports from India to China in 2022-23 stood at $15.32 billion. Exports registered a decline of 28%. While imports from China increased by 4.16% to $98.51 billion. In these figures, we can see that India’s trade deficit with China has increased to $ 83.2 billion in 2022-23, which was $ 72.91 billion in the previous year. China was India’s largest trading partner between 2013-14 and 2017-18. The situation was the same in 2020-21 as well. Although America was India’s largest trading partner in 2021-22 and the same situation remained in 2022-23 as well.

Business relations are important from a strategic point of view

It is also important for India to increase trade relations with America from a strategic point of view. As we all know that due to the border dispute, our relations with China have been continuously deteriorating for the last three-four years. However, business relations were not affected that much. When we analyze the data related to trade, China’s side looks stronger in India-China trade. Under mutual trade, India exports very little to China and imports from China are very high. In this sense, China’s side is stronger. On the contrary, being the largest trading partner, India exports more to America than imports. That is, India’s side is stronger in terms of trade with America. India’s trade deficit with China is increasing continuously. In view of deteriorating relations, there is a need to bridge this gap and this can be possible by further increasing trade relations with America. Friendship between India and America becomes more important in terms of reducing China’s supremacy and creating balance in the Indo-Pacific region. On the other hand, in the last few years, America’s confrontation with China has also increased on the issue of trade. That’s why it goes in favor of America that its relations should be strengthened with such a country, which has a big market like China.

Laying the foundation for a strong, peaceful global community

Both countries are constantly trying to strengthen bilateral relations. Union Finance Minister Nirmala Sitharaman, who went on a tour of America, has also reiterated this point. In a function organized by the Indian Embassy in Washington on April 15, Nirmala Sitharaman has said that India and the US are working together to lay the foundation of a strong, peaceful and harmonious global community. He further said that the relationship between India and America is controlled by the spirit of solidarity. This is a positive thinking relationship of two democratic countries, which have their own challenges and internal problems, but we do not let them dominate us. During this, Finance Minister Nirmala Sitharaman described the contribution of the Indian community and people of Indian origin in America as important in terms of bilateral relations. He said that he wishes that the relationship between America and India should be stronger. India’s Ambassador to the US, Taranjit Singh Sandhu, emphasized that the Indo-US partnership will not only benefit both the countries, but is important for the whole world.

mutual relations will be better in future

India’s importance for America is continuously increasing from the point of view of meeting global interests and diplomatic needs. This is the reason why there are continuous statements coming from America regarding the strength of relations with India. Since the war between Russia-Ukraine, it has increased more rapidly. From the Indian side too, there is a continuous effort to increase relations with America.

Another similar statement has come from the White House on Saturday (April 15) night. Kurt Campbell, a top White House official and Indo-Pacific coordinator of the US National Security Council, has said that in the last few years, the two countries have built a strong relationship. He has expressed confidence that mutual relations will be better in future.

Emphasis on enhancing people-to-people relations

While addressing Indian-Americans during a program organized by the Indian Embassy in Washington DC, Kurt Campbell has also said that the relationship between the people of the two countries is stronger than that between the people of any other country. Kurt Campbell emphasized that the relationship between India and the US is not just about technology or security issues. It is a relationship, which is based on mutual relations between people. He further said that there are many such matters, in which there is a need to step out from the middle in the form of governments. With this, people of both the countries will get a chance to work together in different ways. He acknowledged that there are so many challenges and difficulties in the world, yet it is wonderful to see India-US relations growing and flourishing.

Work on giving new height to relations

Actually, this statement of Kurt Campbell only means that India is a very important partner for America at present. Kurt Campbell is the Coordinator for Indo Pacific Affairs in the US National Security Council. We know that the advice of the National Security Council to the President is very important for America’s foreign policy and security matters. In common language, on the basis of whatever decision the Council takes, issues related to America’s foreign policy and national security move forward. In such a situation, if the National Security Council there wants that the mutual relations between the people of India and America should increase further, then it is a clear indication that the Biden administration wants to give a new height to the relations with India.

India’s rising status on international forums

Right now India is presiding over the world’s most powerful economic group G-20. Along with that, India is also carrying out the responsibility of the presidency of Shanghai Cooperation Organization ie SCO, another strong platform in terms of Geo-Politics. India is emerging as a loud voice of developed and underdeveloped countries in every international fora. It is no longer possible to ignore India’s views on any international platform. America also wants to take advantage of this strong position of India to fulfill its global interests. India is ready to share its potential and success with the world and the White House also wants America to take advantage of it. Whether it is as a market for business or it is a matter of maintaining American interests in the Indo-Pacific, the role of a good and strong relationship with India increases a lot. Due to the Ukraine war, tensions have increased in America’s relations with Russia. After the Cold War, once again the world seems to be divided into two axes. India’s relations with Russia have been very good and despite the Ukraine war, there has been no impact on relations with Russia. In such a situation, it is the effort of the Biden administration that India should always maintain a positive attitude towards America.

global comprehensive strategic partnership

India and the US have a global comprehensive strategic partnership and its roots are getting deeper and deeper. In June 2016, the two countries defined mutual relations as permanent global partners in the 21st century. The US recognized India as a Major Defense Partner in 2016 to facilitate easy access of defense equipment and technology to India. In July 2018, the US granted STA-1 (Strategic Trade Authorization-1) country status to India. announced to provide. India is the first country in South Asia to get this status. Countries like South Korea, Australia and Japan have got this status. This status makes it easy for India to get important defense technology from America. In February 2020, the then President Donald Trump visited India. During this, both the countries decided to take Indo-US relations to the level of comprehensive global partnership.