Replace China, as the business ties with the US improve
India-U.S. bilateral relations have developed into a “global strategic partnership” based on shared democratic values and increasing convergence of interests on bilateral, regional and global issues. During Prime Minister’s visit to the US in September 2014, the two sides set a target to increase bilateral trade in goods & services to $500 billion.
According to a Ministry of External Affairs note, the emphasis placed by the Government in India on development and good governance has created an opportunity to reinvigorate bilateral ties and enhance cooperation under the motto — “ChaleinSaathSaath: Forward Together We Go” and “SanjhaPrayas, Sab ka Vikas” (Shared Effort, Progress for All) adopted during the first two summits of Prime Minister Modi and President Obama in September 2014 and January 2015 respectively. The summit level joint statement issued in June 2016 called the India-U.S. relationship an “Enduring Global Partners in the 21st Century”.
The fruits are now visible: According to the data of the commerce ministry, in 2021-22, the bilateral trade between the US and India stood at USD 119.42 billion as against USD 80.51 billion in 2020-21. The US is one of the few countries with which India has a trade surplus. In 2021-22, India had a trade surplus of US$ 32.8 billion with the US. Trade experts believe that bilateral trade with the US will continue to grow in the coming years as New Delhi and Washington continue to strengthen economic ties.
As a result, the US surpassed China to become India’s top trading partner in 2021-22, reflecting strengthening economic ties between the two countries. There have been regular contacts at political and official levels on bilateral, regional and global issues.
At the level of Foreign Secretary of India and US Undersecretary for Political Affairs, Foreign Office Consultations are an important part of the dialogue structure.
The Commerce Ministry data shows that the exports to the US increased to USD 76.11 billion in 2021- 22 from USD 51.62 billion in the previous fiscal year, while imports rose to USD 43.31 billion compared to about USD 29 billion in 2020-21. India’s two way commerce with China during 2021-21 aggregated at USD 115.42 billion compared to USD 86.4 billion in 2020-21.