Bi lateral trade - #SectorUpdates
Rapidly expanding trade and commercial linkages between India and U.S. form an important component of the multi-faceted partnership between the two countries. Total bilateral trade (goods and services) between India and US increased at a CAGR of 11.5% from USD 20 billion in 2000 to USD 142 billion in the year 2018 (latest: CAGR of 7.9% from USD 20 billion in the FY2000 to USD 107 billion in the year FY22). In 2018, the growth in bilateral trade was accelerated by services trade, which grew at a CAGR of 13.4%. Goods trade grew at a CAGR of 10.6%. During the year 2018, goods trade contributed to 61.6% and trade in services contributed 38.4% of the total India-US bilateral trade of USD 142 billion. In order to further strengthen the bilateral ties, both countries need to take an incremental approach focusing on low-hanging fruit and gradually building up to more significant areas of contention. It is also important to address trade issues head-on rather than defer them to prioritize strategic cooperation.