As part of a larger plan to lessen its important reliance on China for trade, India is aggressively seeking to boost imports from the US, in response to long-standing concerns over market access and trade deficits, recent events indicate that the United States and India have established a trade negotiation roadmap targeted at attaining better reciprocity and balance in their trading relationship, the Trump administration which has levied tariffs on Indian goods and is urging nations to move their supply chains away from China, is putting increasing pressure on this.
Trade data for the fiscal year 2024-25 highlights this shift. India’s exports to the U.S rose by 11.6% to $86.5 billion, while imports from the U.S also increased by 7.4% to $45.3 billion, in contrast, India’s trade deficit with China widened sharply to a record $99.2 billion, driven by a surge in imports of electronics, consumer durables, and components, even as Indian exports to China fell by 14.5%, this growing imbalance has prompted India to explore ways to reduce its trade surplus with the U.S by encouraging Indian industries to increase imports of American goods, helping to ease U.S concerns and fast-track bilateral trade agreements.
To find areas where U.S imports can be increased, the Indian government is actively interacting with industry participants. Crude oil petroleum products, coal, diamonds, electric machinery, aircraft components and gold are among the main American exports to India, diversifying India's import sources and lowering its dependency on China, particularly in delicate industries, are the objectives, with the help of government programs like Production Linked Incentives PLI and strategic trade agreements, India is simultaneously establishing itself as a desirable manufacturing location for American companies looking for alternatives to China.
Despite these actions, India continues to exercise caution while dealing with China because of the two nations profound economic ties, given India reliance on Chinese electronic components and other inputs, imports are still rising even as exports to China have decreased, in order to avoid binary geopolitical alignments, think tanks and officials stress the significance of preserving strategic autonomy and interacting with the United States and China on equal terms.
With a mutual goal of increasing bilateral trade from the current level of approximately $191 billion to $500 billion by 2030, the current trade talks between the United States and India are intended to greatly expand bilateral trade, the main goals of the negotiations are to balance the trade deficit, which the United States views as a serious issue, reform unfair trade practices and create new markets for American goods, in order to increase exports and economic growth, India is also attempting to take advantage of the changing global supply chains by luring American businesses to relocate from China.
Trade data for the fiscal year 2024-25 highlights this shift. India’s exports to the U.S rose by 11.6% to $86.5 billion, while imports from the U.S also increased by 7.4% to $45.3 billion, in contrast, India’s trade deficit with China widened sharply to a record $99.2 billion, driven by a surge in imports of electronics, consumer durables, and components, even as Indian exports to China fell by 14.5%, this growing imbalance has prompted India to explore ways to reduce its trade surplus with the U.S by encouraging Indian industries to increase imports of American goods, helping to ease U.S concerns and fast-track bilateral trade agreements.
To find areas where U.S imports can be increased, the Indian government is actively interacting with industry participants. Crude oil petroleum products, coal, diamonds, electric machinery, aircraft components and gold are among the main American exports to India, diversifying India's import sources and lowering its dependency on China, particularly in delicate industries, are the objectives, with the help of government programs like Production Linked Incentives PLI and strategic trade agreements, India is simultaneously establishing itself as a desirable manufacturing location for American companies looking for alternatives to China.
Despite these actions, India continues to exercise caution while dealing with China because of the two nations profound economic ties, given India reliance on Chinese electronic components and other inputs, imports are still rising even as exports to China have decreased, in order to avoid binary geopolitical alignments, think tanks and officials stress the significance of preserving strategic autonomy and interacting with the United States and China on equal terms.
With a mutual goal of increasing bilateral trade from the current level of approximately $191 billion to $500 billion by 2030, the current trade talks between the United States and India are intended to greatly expand bilateral trade, the main goals of the negotiations are to balance the trade deficit, which the United States views as a serious issue, reform unfair trade practices and create new markets for American goods, in order to increase exports and economic growth, India is also attempting to take advantage of the changing global supply chains by luring American businesses to relocate from China.
