“TRADE RELATIONSHIP BETWEEN INDIA AND UNITED

STATES OF AMERICA AND BALACE OF TRADE”

Submitted in partial fulfillment of the requirements for the award of the

Degree of Bachelor of Commerce of CHRIST (Deemed to be University) during
the year 2019-20

By
AMRUTHA.A 1710262
ARPITHA.A 1710363
DEEPA.K 1710365
PRASANNA 1710355

Under the guidance of

Mr. SATISH KUMAR
Associate Professor

Department of Commerce
CHRIST (Deemed to be University)
Bengaluru- 560029

March 2020
 TABLE OF CONTENTS

Sl.No Particulars Page no

1. INTRODUCTION

2. REVIEW OF LITERATURE

3. RESEARCH DESIGN

4. DATA ANALYSIS AND

INTERPRETATION

5. FINDINGS AND CONCLUSIONS

6. ANNEXURES
 ABSTRACT

The USA-India partnership has its core foundation in common values, including the rule of law
and democratic principles. The United States and India have shared interests in promoting
global security, stability and economic prosperity through trading, investments and through
connectivity. The United States supports India’s as a leading global power and a vital partner
in efforts to ensure that the indo-pacific region is the place known for peace, stability and
growth.

Keywords:

Bilateral trade, relationship, economy

 CHAPTER-1: INTRODUCTION

Prominent leaders of India's freedom movement had friendly relations with the United States
of America which continued well after independence from the United Kingdom in 1947. In
1954, the United States made Pakistan a Central Treaty Organization (CENTO) treaty-ally.
India cultivated strategic and military relations with the Soviet Union to counter Pakistan–
United States relations. In 1961, India became a founding member of the Non-Aligned
Movement to avoid involvement in the Cold War power-play between the United States and
the Soviet Union. The Nixon administration's support for Pakistan during the Indo-Pakistani
War of 1971 affected relations until the dissolution of the Soviet Union in 1991. In the 1990s,
Indian foreign policy adapted to the unipolar world and developed closer ties with the United
States.

India-US trade relationship is an important aspect of the global and strategic partnership
existing between two countries, United States and India. The India US trade relationship over
the tears have grown to reach US $31.917 billion in 2006.

Both the nations believe that the cordial India US Trade Relations will have a long lasting and
positive influence on the future international system, promoting stability, democracy,
prosperity and peace across the world.

The United States and India see one another as an important strategic partners to move forward
on common interests regionally and globally. Bilateral trade in goods and services is about 3%
of US. The trading relationship was more consequential in India; In 2018, the United States
was its second largest goods export market holding (16.0% share) which comes after the
European union (EU,17.8%), and is the third largest goods import supplier (6.3%) after china
(14.6%) and the EU28 (10.2%). US-India foreign direct investments(FDI) is small, but growing
defence sales also are significant in bilateral trade, civilian nuclear commerce, racked for years
over differences and liability protections. Has produced major potential US supply contracts.

The Trump Administration takes issue with the U.S. trade deficit with India, and has criticized
India for a range of “ unfair ” trading practices. Indian Prime Minister Modi’s first term fell
short of many observer’s expectations, as India did not move forward with anticipated market-
opening reforms, and instead increased tariffs and trade restrictions. Modi’s strong electoral
mandate may encourage the Indian government to go ahead with its reform agenda with
greater health. Slowing economic growth in India raises concerns about its business
environment.

The economic relations of United States looks through an expandable trade relationship that is
fair, talking about bilateral trade between these two great economies, in 2018 it was $142
billion, a 12.6% increase than of 2017.the US energy exports are one of the important trade
areas resulting in growth of the trade relationship. Back in 2018, India purchased 48.2 million
barrels of U.S crude oil, a focused increase from 9.6 million in 2017.

Increase in bilateral trade & investment, co-operation on global security matters, inclusion of
India in decision-making on matters of global governance (United Nations Security Council),
upgraded representation in trade & investment forums (World Bank, IMF, APEC), admission
into multilateral export control regimes (MTCR, Wassenaar Arrangement, Australia Group)
and support for admission in the Nuclear Suppliers Group and joint-manufacturing through
technology sharing arrangements have become key milestones and a measure of speed and
advancement on the path to closer US–India relations. In 2016, India and United States signed
the Logistics Exchange Memorandum of Agreement and India was declared a Major Defense
Partner of the United States.

In the year 2017, bilateral trade (in both goods & services) grew by 9.8% to reach
US$126,100,000,000. India's exports to the US stood at US$76,700,000,000 while USA's
exports to India stood at US$49,400,000,000.
 CHAPTER-2: REVIEW OF LITERATURE

(Chacko, 2014)

This article basically states that the power transistion creates not only physical concerns to the
state, but also ontological insecurities, as in established identities, hierarchies, and relationships
are challenged. It is also said that looking out for special relationships with others is one way
for the state to look on mitigation on this uncertainity. From an analysis relating the discourse
of the “rise in India” part, made by the policymakers and commentators of the United States, it
is shown that recent US representations of India is looking for a consolidate particular US
identity, based on the belief of American exceptionalism, and attempt to construct a new
“special relationship” with India. However, while India–US relations have improved, the
relationship continues to be hampered by their differing world-views and self-perceptions,
which, as in the past, undermine each other's sense of ontological security.

(Martin & kronstadt, 2007)

This article says about the strained political relations held after decades,based on numerous
overlapping interests and shared values and improvised economic and trade relations, the US
and Indian government are currently into pursuing a “Strategic Partnership”. It says that many
US companies view India as a lucrative market and a candidate for foreign investment. For its
part, the current Indian government sees itself continuing the economic reforms started in 1991,
aimed at transforming a quasi-socialist economy into a more open, market-oriented economy.
However, the US government is concerned that India’s economic reforms are progressing too
slowly and unevenly. India is in the midst of a rapid economic expansion, and many US.
Bilateral merchandise trade has grown from $6 billion in 1990 to $33 billion in 2006. However
India stands at only 21th largest export market for the United States in 2006.the United States
has become India’s leading trading partner, mostly due to the growth in India’s exports to the
United States In 2006, the US bilateral trade deficit with India totaled $13 billion.

(Mishra & Roy, 2016)

This article states about the documents stylized facts about the evolution of trade and foreign
direct investment (FDI) between India and the United States over the last four decades. In this
paper, there lies a question about how does India-US trade and FDI deviate from its potential?
Using an big gravity model and a large sample of countries over 1970–2009, we found that
while India’s exports to the US were 34 % higher than predicted, US exports to India are in line
with its potential. India loses its over-trading status while US turns out to be under-exporting
to India in the period after 1990. For primary and intermediate goods during post-1990, US
exports to India turn significantly below normal. Conducting similar analysis for bilateral FDI
flows for the period 1985–2009, we show that while US direct investments in India are in line
with predictions based on fundamentals, India has actually been an under-investor in the US
market.

(Shrivastava, 1993)

This article is contended about the new chaotic world even before and is prone to much violence
stating that emergency at the beginning of 1990s. it also presents about the end of the old order,
the world is no longer restricted into two rival Power blocks. The Soviet Union has
disintegrated, and the new state, the Commonwealth of Independent States (CIS), is in no
position to serve as the countervailing Power.being the most powerful country of the world;
and its economy remains the world's largest economy although its share in the world economy
had declined. With the end of the Cold War, the ideological confrontation between East and
West has also ended. There are not many countries left in the world today which do not swear
by democracy. Countries throughout the world are being forced to redefine their foreign
policies against the background of these radical changes. The dramatic changes in the erstwhile
Soviet Union and the emergence of the United States as the sole surviving Super Power from
the Cold War have profound implications for India's relations with the United States. A large
number of countries which were centrally planned economies earlier have either turned into
market economies or made their own economic systems more market-friendly than before.
Consequently the world today is economically well integrated as never before.
 CHAPTER-3: RESEARCH DESIGN

OBJECTIVES OF THE STUDY:

The core objectives of this study is to know the recent trends going on in between two countries,
as that we have selected them here is India and United States Of America. this report is based
on the trade relationship that is taken by these countries . This study basically analyses the trade
flow of two emerging economies namely India and USA. Analysis of balance of trade. this
study is organized to look on the problems and gain solutions on the same.the focus of this
study is limited to only the trade relationship between the economies in order to study the
variables and observe changes.

STATEMENT OF PROBLEMS:

Based on the study,the problems identified are to be listed below:

Tariffs.

Tariff policies have increased bilateral tensions over the time.especially in agriculture, india
holds relatively high average tariff rates. It can raise its applied rates to bound rates without
violating its commitments under the WTO, causing uncertainty for U.S. exporters. India’s tariff
hikes include raising tariffs on cell phones from 0% originally to 15% to 20%.The United States
and others question India’s compliance with the WTO Information Technology Agreement
(ITA). India also has raised duties remained on the “Special 301” Priority Watch List in 2018,
based on U.S. concerns, for instance, over India’s treatment of patents, infringement rates, and
trade secret protection.

“Forced” Localization.

The United States continues to press India to address its “forced” localization practices, such
as in-country data storage, domestic content, and domestic testing requirements—viewed by
the United States as presenting barriers to trade with India. Adding to U.S. concerns are India’s
new restrictive localization rules for certain financial data flows, which affect companies such
as Visa and MasterCard. At the same time, India has moved to ease some local sourcing rules
for single-brand retailers, which would affect companies such as Apple.
Investment.

India aims to attract foreign investment and has made FDI reforms, such as raising foreign
equity caps for insurance and defense, and other strides to improve its business environment.
U.S. concerns about investment barriers remain nevertheless, heightened by new Indian
restrictions on how e-commerce platforms such as Amazon and Walmart-owned Flipkart
conduct business. From the U.S. view, India’s weak regulatory transparency and other issues,
such as India’s IPR and localization policies, add to concerns about FDI barriers. Two-way
U.S.-Indian FDI is linked to U.S. jobs and exports in a range of sectors, yet U.S. FDI in India
prompts some offshoring concerns.

RESEARCH METHODOLOGY

The research is carried out being secondary in nature. The sources are collected through some
of the websites and google scholar, Wikipedia. the articles are collected based on the theme of
the paper. the researchers aimed at collecting 15 articles out of which 4 articles are been
selected which are extensively reviwed. We also use tools such as statistical data exploration
in order to evaluate and come out with interpretation.
 CHAPTER-4: ANALYSIS AND INTERPRETATION

2018 : U.S. trade in goods with India

NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise
specified. Details may not equal totals due to rounding. Table reflects only those months for which there was trade.

Month Exports Imports Balance

January 2018 2,200.5 4,417.6 -2,217.0

February 2018 2,305.7 3,959.6 -1,653.9

March 2018 3,279.5 4,367.6 -1,088.2

April 2018 2,442.0 4,783.1 -2,341.1

May 2018 2,624.7 5,091.5 -2,466.8

June 2018 3,275.5 4,173.0 -897.5

July 2018 2,541.7 4,593.7 -2,052.0

August 2018 3,110.2 5,075.7 -1,965.5

September 2018 2,946.0 4,499.0 -1,553.0

October 2018 2,826.1 5,331.8 -2,505.6

November 2018 2,659.7 4,107.1 -1,447.4

December 2018 3,291.2 3,949.6 -658.5

TOTAL 2018 33,502.8 54,349.3 -20,846.5

2019 : U.S. trade in goods with India
NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise
specified. Details may not equal totals due to rounding. Table reflects only those months for which there was trade.

Month Exports Imports Balance

January 2019 2,662.6 4,927.2 -2,264.5

February 2019 2,675.3 4,609.2 -1,933.9

March 2019 3,470.4 5,135.5 -1,665.1

April 2019 3,204.9 5,036.2 -1,831.3

May 2019 3,094.2 5,625.2 -2,531.0

June 2019 3,243.1 4,142.4 -899.4

July 2019 2,532.2 4,953.4 -2,421.3

August 2019 2,597.2 4,776.3 -2,179.1

September 2019 2,516.4 4,643.8 -2,127.4

October 2019 2,626.7 5,031.8 -2,405.1

November 2019 2,727.0 4,505.0 -1,778.0

December 2019 3,059.6 4,279.5 -1,219.8

TOTAL 2019 34,409.6 57,665.5 -23,255.9

As we compare the above table described about the U.S. trade in goods with India in 2018-
2019 about the imports and exports regarding US and INDIA. 54,349.3 in 2018 and 57,665.5
in 2019 The import has been increased by 3,316.2 in the year 2019 when compared to 2018
it’s been a positive balance of trade so we can see that we have strong relationship between
US and INDIA regarding import system. By this we can tell import is done when a country
wants to buy goods and services from other countries for domestic use or to sell in the
domestic market. The import of goods and services are done to meet its demands in the
country. A key reason that countries all over the world choose to import goods is to extend
their profit margins.

In 2018-2019 we have a positive balance in export for the purpose of selling goods and
services to another country. 33,502.8 in 2018 and 34,409.6 in 2019. The export has been
increased by 906.8 in the year 2019 when compared to 2018. By this we can tell that exports
generate income to the country can lead profits.

2017 : U.S. trade in goods with India

NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise
specified. Details may not equal totals due to rounding. Table reflects only those months for which there was trade.

Month Exports Imports Balance

January 2017 1,666.2 3,790.4 -2,124.2

February 2017 1,933.4 3,470.4 -1,537.0

March 2017 2,110.8 4,142.7 -2,031.9

April 2017 1,992.4 3,759.3 -1,766.9

May 2017 2,061.8 4,498.1 -2,436.3

June 2017 2,338.4 4,016.9 -1,678.5

July 2017 2,186.1 4,198.6 -2,012.5

August 2017 2,491.7 4,176.8 -1,685.1

September 2017 2,253.9 4,345.1 -2,091.2

October 2017 2,224.7 4,552.6 -2,327.8

November 2017 2,023.5 4,001.2 -1,977.8

December 2017 2,365.3 3,597.6 -1,232.3

TOTAL 2017 25,648.3 48,549.7 -22,901.5

2018 : U.S. trade in goods with India
NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise
specified. Details may not equal totals due to rounding. Table reflects only those months for which there was trade.

Month Exports Imports Balance

January 2018 2,200.5 4,417.6 -2,217.0

February 2018 2,305.7 3,959.6 -1,653.9

March 2018 3,279.5 4,367.6 -1,088.2

April 2018 2,442.0 4,783.1 -2,341.1

May 2018 2,624.7 5,091.5 -2,466.8

June 2018 3,275.5 4,173.0 -897.5

July 2018 2,541.7 4,593.7 -2,052.0

August 2018 3,110.2 5,075.7 -1,965.5

September 2018 2,946.0 4,499.0 -1,553.0

October 2018 2,826.1 5,331.8 -2,505.6

November 2018 2,659.7 4,107.1 -1,447.4

December 2018 3,291.2 3,949.6 -658.5

TOTAL 2018 33,502.8 54,349.3 -20,846.5

The U.S. trade in goods with India in 2017-2018 regarding to imports and exports in US and
INDIA. 25648.3 in the year 2017 and 33502.8 in the year 2018. There is huge increase of
7,854.5 in the exports which in turns bring money into the country, which increases the
exporting nations of GDP. It also helps to increase their sales potential and increase profits in
their country.

In case of imports in US and INDIA we can see a positive impact in the country. 48,549.7 in
the year 2017 and 54,349.3 in the year 2018. The import has been increased by 5,799.6 in the
year 2018 when compare to 2017. We can observe that each and every year its been increasing
rather than decreasing of exports and imports of the country which is a good sign for the
country.
2016 : U.S. trade in goods with India
NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise
specified. Details may not equal totals due to rounding. Table reflects only those months for which there was trade.

Month Exports Imports Balance

January 2016 1,485.6 3,692.6 -2,206.9

February 2016 1,526.7 3,660.3 -2,133.6

March 2016 1,834.6 3,996.9 -2,162.3

April 2016 1,773.0 3,677.3 -1,904.3

May 2016 1,586.2 4,124.6 -2,538.4

June 2016 1,740.6 3,535.6 -1,795.0

July 2016 1,631.6 3,803.8 -2,172.2

August 2016 1,900.8 3,905.9 -2,005.2

September 2016 1,888.0 4,103.6 -2,215.6

October 2016 2,128.4 4,541.2 -2,412.8

November 2016 2,060.9 3,542.5 -1,481.6

December 2016 2,090.8 3,439.9 -1,349.1

TOTAL 2016 21,647.2 46,024.2 -24,377.1

2017 : U.S. trade in goods with India
NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise
specified. Details may not equal totals due to rounding. Table reflects only those months for which there was trade.

Month Exports Imports Balance

January 2017 1,666.2 3,790.4 -2,124.2

February 2017 1,933.4 3,470.4 -1,537.0

March 2017 2,110.8 4,142.7 -2,031.9

April 2017 1,992.4 3,759.3 -1,766.9

May 2017 2,061.8 4,498.1 -2,436.3

June 2017 2,338.4 4,016.9 -1,678.5

July 2017 2,186.1 4,198.6 -2,012.5

August 2017 2,491.7 4,176.8 -1,685.1

September 2017 2,253.9 4,345.1 -2,091.2

October 2017 2,224.7 4,552.6 -2,327.8

November 2017 2,023.5 4,001.2 -1,977.8

December 2017 2,365.3 3,597.6 -1,232.3

TOTAL 2017 25,648.3 48,549.7 -22,901.5

When we compare 2016-2017 of US trade in goods with INDIA. Again there is a positive impact in
exports and imports of a country, the countries buy and sell goods and services from other countries to
meet its demand in their country. By the increase of imports and exports that lead to the development
and growth of national economies because not all countries have the resources and skills required to
produce certain goods and services. in 2016 the import of the country has been increased by the 2525.5
in the year 2017.

Even export has been increased by the 4001.1 in the year 2017 by this analysis we can tell that there is
a good and positive improvement by increasing their imports and exports in US and INDIA .
 2015 : U.S. trade in goods with India
NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise
specified. Details may not equal totals due to rounding. Table reflects only those months for which there was trade.

Month Exports Imports Balance

January 2015 1,543.6 3,653.9 -2,110.3

February 2015 1,616.2 3,316.4 -1,700.2

March 2015 1,816.5 4,116.3 -2,299.8

April 2015 1,945.6 4,120.3 -2,174.7

May 2015 1,788.3 4,042.0 -2,253.7

June 2015 2,315.1 3,786.0 -1,470.9

July 2015 1,872.2 4,102.4 -2,230.3

August 2015 1,875.1 3,805.6 -1,930.5

September 2015 1,725.7 3,672.8 -1,947.2

October 2015 1,829.5 3,878.9 -2,049.4

November 2015 1,580.2 3,273.5 -1,693.3

December 2015 1,544.8 3,014.5 -1,469.7

TOTAL 2015 21,452.9 44,782.7 -23,329.7

2016 : U.S. trade in goods with India
NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise
specified. Details may not equal totals due to rounding. Table reflects only those months for which there was trade.

Month Exports Imports Balance

January 2016 1,485.6 3,692.6 -2,206.9

February 2016 1,526.7 3,660.3 -2,133.6

March 2016 1,834.6 3,996.9 -2,162.3

April 2016 1,773.0 3,677.3 -1,904.3

May 2016 1,586.2 4,124.6 -2,538.4

June 2016 1,740.6 3,535.6 -1,795.0

July 2016 1,631.6 3,803.8 -2,172.2

August 2016 1,900.8 3,905.9 -2,005.2

September 2016 1,888.0 4,103.6 -2,215.6

October 2016 2,128.4 4,541.2 -2,412.8

November 2016 2,060.9 3,542.5 -1,481.6

December 2016 2,090.8 3,439.9 -1,349.1

TOTAL 2016 21,647.2 46,024.2 -24,377.1

In the year 2015-2016 there is a huge increase in the imports and when you compare exports it’s been
a small increase in difference. If a country imports more than it exports it runs a trade deficit. if it
imports less than it exports that creates a trade surplus, a key reason that countries all over the world
choose to import goods is to extend their profit margin. Exports are goods that are sold in a foreign
market, while imports are foreign goods that are purchased in a domestic market.

In 2016 there is a increase in import of 1241.5 which is a positive sign of a country and even there is an
increase in exports of 194.3 in the year 2016.

By observing all the years of imports and exports of US INDIA I would conclude by saying that for
every country exports and imports are important for the development and growth of national economies
because not all countries have the resources and skills required to produce certain goods and services.
It is better for a country to maximize total trade, exports and imports. Exports are not better than imports,
nor are imports better than exports. Both are great and increase the wealth of a nation. Current account
deficits and surpluses reflect differences in savings and investments.

The United States and India are holding negotiations to address bilateral trade frictions. They
reportedly are preparing a limited trade deal potentially to unveil during President Trump’s
planned February 2020 visit to India. The possible deal may include partial restoration by the
United States of preferences afforded to India under GSP in exchange for certain market access
commitments by India, according to press accounts. Expectations did not materialize for a deal
announcement in September 2019 at the United Nations General Assembly’s opening session.
Prior lack of progress reportedly prompted the Administration to consider launching an
investigation into India’s trade practices under Section 301 of the Trade Act of 1974. The US
is insisting on duty cuts on certain US imports like medical devices into India and that
India should have no price control on them. The growth in the imports of medical
devices from the US has been quite impressive — the US being the main supplier.
Imports of such devices rose by 24 per cent to Rs 38, 837 crore in FY 19. The
government slashed the prices of medical devices by 85 per cent and capped the trade
margins for coronary stents in 2017. This is because the Indian government equated
high trade margins to ‘illegal profiteering.’ It capped the prices of high-end heart stents
(small wire mesh structures used to treat blocked arteries) at around $450 compared to
$3,000 charged earlier. This was followed up with a round of price controls on knee
implants. The government defended its move, saying it had imposed price control to
rein in unethical practices and trade distortionary measures in the industry. Many US
companies were hit like Boston Scientific, Stryker and Johnson and Johnso n
The new trade deal, however, will have to resolve the sticky points and there seem to
be a near solution as Piyush Goyal announced at the US-India Strategic Forum in
Washington DC that US Trade Representative Ambassador Robert Lighthizer and he
have almost “resolved the broad contours of what was going to be announced.”
Recently the two parties have come down to discussing duty cuts on 40 goods,
including apples, almonds and mobile phones, smart watches and engineering goods .
US has also demanded unconditional market access for dairy products which India has
not been able to grant because of religious and cultural reasons. The US cows are fed
with animal feeds or blood meal made of blood from cattle and pigs in order to give
them a high protein dietary supplement which increases milk output. This practice is
not acceptable to Indians. For protecting religious sensitivities, now dairy is out of
India-US talks. India requires certification that animals have never been fed blood
meal. If India provided market access to dairy exports, US exports would rise by $100
million. Yet, it is an avenue which is likely to remain closed. India also wants easier
certification for its fruit exports like grapes and pomegranates for better market access
to the US market. Both countries have to review their priorities, and the US should
not treat India based on the size of its GDP alone. The per capita income of India
is one seventeenth of the US’s per capita income — and the ‘affordability’
question is important.

Among large Indian corporations having investments in the U.S. include Reliance Industries
Limited, Tata Consultancy Services, Wipro, Essar America, Piramal, Mahindra, Lupin, Sun
Pharma, etc. There are several dialogue mechanisms to strengthen bilateral engagement on
economic and trade issues, including a Ministerial Level Economic and Financial Partnership
and a Ministerial Trade Policy Forum. For greater involvement of private sector in the
discussions on issues involving trade and investment, there is a bilateral India-USA CEO’s
Forum.
EXPORT DETAILS
 CHAPTER-5: FINDINGS AND CONCLUSION

FINDINGS:

• Bilateral merchandise trade has grown from $6 billion in 1990 to $33 billion in 2006.
• India stands at only 21th largest export market for the United States in 2006.
• The India US trade relationship over the tears have grown to reach US $31.917 billion
in 2006.
• In 2006, the US bilateral trade deficit with India totaled $13 billion.
• The United States supports India’s as a leading global power and a vital partner in
efforts to ensure that the indo-pacific region is the place known for peace, stability and
growth.
• Bilateral trade in goods and services is about 3% of US.
• Using an big gravity model and a large sample of countries over 1970–2009, we found
that while India’s exports to the US were 34 % higher than predicted, US exports to
India are in line with its potential.
• For primary and intermediate goods during post-1990, US exports to India turn
significantly below normal.
• Conducting similar analysis for bilateral FDI flows for the period 1985–2009, we show
that while US direct investments in India are in line with predictions based on
fundamentals, India has actually been an under-investor in the US market.
• In the year 2017, bilateral trade (in both goods & services) grew by 9.8% to reach
US$126,100,000,000
• India's exports to the US stood at US$76,700,000,000 while USA's exports to India
stood at US$49,400,000,000.
• In 2016 there is a increase in import of 1241.5 which is a positive sign of a country and even
there is an increase in exports of 194.3 in the year 2016.
CONCLUSION:

India’s relationship with United States remains crucial and important to its own objectives. the US India
partnership has its own foundation in democratic principles and common law, these two major
economies have shared interest in promoting global security, stability and economic prosperity through
trade, investments and connectivity. According to Gallup’s Worlds Affairs Survey, India is accepted by
Americans as their 6th Favourite nation in the world. Also with 71% Americans see India favourably in
2015. India being the importer of Agricultural products totaled to $1.5 billion in 2018 from U.S .

By observing all the years of imports and exports of US INDIA I would conclude by saying that for
every country exports and imports are important for the development and growth of national economies
because not all countries have the resources and skills required to produce certain goods and services.

It is better for a country to maximize total trade, exports and imports. Exports are not better than imports,
nor are imports better than exports. Both are great and increase the wealth of a nation. Current account
deficits and surpluses reflect differences in savings and investments.
 BIBILOGRAPHY
REFERENCES:

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