The United States has surpassed China as India's largest commercial partner.
The United States has long been India's greatest market for services exports, but recent trade figures reveal that abroad sales of merchandise goods to India have surpassed China, making it Asia's third-largest economy's largest bilateral trading nation.
According to the latest data from the commerce ministry, the United States was India's biggest trading partner in 2021-22, overtaking China, indicating post-pandemic realignments of global trade and the strengthening of ties between two of the world's greatest democracies.
The United States has long been India's greatest market for services exports, but recent trade figures reveal that abroad sales of merchandise goods to India have surpassed China, making it Asia's third-largest economy's largest bilateral trading nation. India's merchandise exports reached a new high of $418 million.
According to figures from the commerce ministry, bilateral trade between the United States and India increased by 48.3% to $119.42 billion in 2021-22, up from $80.51 billion in 2020-21, as global producers and importers, including those from India, seek to reduce their reliance on China and shift to more reliable markets and supply lines.
Beijing's tough zero-Covid policy, which is already affecting its global commerce, might further reshape trade lines, as advanced and emerging economies suffer significant losses owing to raw material shortages and supply chain problems.
The increasing expenses of China's Covid strategy come at a time when the world is already dealing with the economic fallout from the Ukraine conflict, which has sparked a commodity-price spiral and stymied the pandemic's recovery.
China was India's most important trading partner.
"The United States has become our major merchandise trading partner, and it's important to emphasise that we have a trade surplus with the United States," said Ajay Sahai, director-general of the Federation of Indian Export Organizations. India has a $32.8 billion trade surplus with the United States in 2021-22.
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