Observing India-US Ties through Numbers
India has a strong relationship with the United States spanning trade, investment, and more. In the financial year 2023, India exported 7,753 commodities to the United States. India’s exports to the US stood at USD 76.17 billion in FY22, which jumped to a value of USD 78.54 billion in FY23. Key items exported from India to the US include pearls, precious, and semiprecious stones (USD 9.20 billion); followed by drug formulations.
India-US Relations: A Look at Key Numbers
Both the countries have been focusing on strengthening their partnerships and as a result, there has been a significant increase in trade and investment between the two nations over the past few years.
For India, the United States is a major source of foreign direct investment and tourism. The US has emerged as the 3rd largest investor for India, with total FDI inflows of USD 62.24 billion during the period of Apr 2000 – Sep 2023. As per the data from the U.S. Embassy, 1.4 million U.S. visas were processed in 2023, making it an all-time high. Reportedly, an increase of 60% in applications was registered in 2023 when compared to the previous year.
Key Export Categories from India to the USA
Key export categories for India to the US include electrical equipment and machinery, precious and semi-precious stones, pharmaceutical goods, and petroleum jelly.
Table: Top Commodities Exported from India to the US Apr’23 – Mar’24 ($Mn)
Natural or cultured pearls, precious or semi-precious stones, coins, and imitation jewellery together formed one of the top three export items, standing at a value of USD 6.2 billion for the year 2024 (Jan-Aug). Assessing the growth potential of India’s gems and jewellery sector, the Indian government has declared it as a key area for export promotion.
Besides, the United States has emerged as the largest export destination for Indian merchandise. In 2023-24, merchandise exports from India to the US reached USD 77.52 billion. As of the second quarter ended September 2024, India’s merchandise export stands at approximately USD 40, 326 million.
Figure: Top 5 Countries/Region for Indian Merchandise Exports, 2023, USD Million
Figure: Top 5 Countries/Region for Indian Merchandise Exports, 2024 (Apr-Sep), USD Million
Key Products Imported from the US to India
The major products imported to India from the US are mineral fuels/waxes, precious metals, and machinery. As of August 2024, the US accounted for around 6.1% of the country’s total imports.
Indian Diaspora
The number of Indians living in the US has been continuously increasing. According to government stats, the US was home to nearly 4.8 million Indian Americans as of 2022.
After Mexicans, Indians represent the second-largest immigrant group in the United States. Indians are followed by Chinese and Filipinos, respectively. As of 2021, 2.7 million Indian immigrants living in the US formed 6% of the total foreign-born population, and these numbers have since then grown rapidly.
Conclusion
India-US relations are unlikely to see any major changes and are expected to continue to remain strong in the coming years.
The increasing focus of the U.S. government on reducing its reliance on Chinese imports is expected to open new opportunities for Indian exporters, thus benefiting sectors like textiles, auto parts, and pharmaceuticals.
Proactive government initiatives are expected to play a pivotal role in easing trade regulations and promoting digital trade, thus boosting exports.