India-US bilateral trade records robust growth in December
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New Delhi: Bilateral trade between India and the United States witnessed significant growth in December, despite global shipping disruptions caused by geopolitical tensions. Both countries saw a surge in merchandise exports, reflecting the strength of their trade relationship.
India's merchandise exports to the US rose by 8.5% to $7 billion in December, according to official data. Similarly, US exports to India increased by nearly 10%, reaching $3.77 billion. Key imports from the US included petroleum, petroleum products, coal, coke, and electric machinery and equipment.
A senior official emphasized the mutual benefits of the trade relationship, highlighting how India is providing a growing market for American goods, fostering a two-way trade partnership.
During the first nine months of the current financial year (April-December 2024-25), bilateral trade between India and the US reached $93.4 billion. This figure closely trails India's trade with China, which stood at $94.6 billion during the same period.
India’s electronics exports to the US demonstrated remarkable growth, increasing by 27.4% to $22.5 billion during April-November 2024-25, compared to $17.66 billion in the corresponding period of 2023-24. This surge is part of a continuous upward trend over the past two years, with exports more than doubling year-on-year to $6.6 billion during January-September 2023, as noted by the industry body ICEA.
The growth in electronics exports has been attributed to sanctions on China introduced towards the end of former President Donald Trump’s term, which continued under President Joe Biden. As US companies, including Apple, seek to diversify their supply chains outside of China, India has emerged as a preferred destination, supported by its large domestic market.
India’s electronics exports to the US contributed $7.9 billion to the trade surplus, accounting for over 62% of the total increase. Electronics now rank as the third-largest export sector for India, following engineering products and petroleum, moving up from the sixth position last year.
Within the electronics sector, smartphone exports recorded a 45% increase, driven by expanded production from leading players like Apple and Samsung. Apple’s entry into India, supported by vendors like Foxconn, Pegatron, and Tata Electronics, has significantly boosted exports. Other consumer electronics, solar modules, desktops, and routers have also seen notable growth.
The sector is expected to maintain its momentum with the establishment of semiconductor manufacturing capacities in India, an official said.
India’s apparel exports also recorded double-digit growth, rising by 11.6% to $11.31 billion during April-December 2024-25. This growth is attributed to strong demand in key markets such as the US, the UK, and Germany.
Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), noted that the long-term outlook for Indian apparel exports remains positive. Factors such as improved product acceptance, adaptability to shifting consumer trends, factory compliance, and government-friendly policies have bolstered growth in the sector.
With IANS inputs