India-America Relations / India-US trade friendship continues, achieved this milestone for the fourth time in a row

The US became India's largest trading partner for the fourth consecutive time, taking bilateral trade to $131.84 billion. At the same time, the trade deficit with China increased to $99.2 billion. India's exports and trade surplus with the US also increased, which has further strengthened the relationship.

India-America Relations: Since Donald Trump became the President, discussions have intensified around the world about the relations between India and America. Although differences also emerged on many issues during the Trump administration, the relations between the two countries continued to strengthen at the economic level. The proof of this is America becoming India's largest trading partner for the fourth time in a row. In the financial year 2024-25, bilateral trade between India and the US has reached $ 131.84 billion, which testifies to the strong economic cooperation between the two countries.

America became India's top trading partner

The importance of America for India has become very special not only strategically but also economically. In the financial year 2024-25, India's exports with the US grew by 11.6% to $ 86.51 billion, while imports also grew by 7.44% to $ 45.33 billion. Thus, India got a trade surplus of $ 41.18 billion with the US, which was $ 35.32 billion last year.

Major items exported from India to the US—such as pharmaceuticals and biological products ($8.1 billion), telecom equipment ($6.5 billion), precious stones, petroleum products, gold jewellery, and ready-made garments—reflect the global competitiveness of Indian industries. At the same time, products like crude oil, coal, electric machinery, aircraft and diamonds are imported into India from the US.

Trade deficit with China increased, became a matter of concern

On the other hand, India's trade balance with China remains a matter of concern. The trade deficit with China increased by 17% to $99.2 billion in FY 2024-25, from $85.07 billion in 2023-24. The special thing is that India's exports to China fell by 14.5% to $14.25 billion, while imports increased by 11.52% to $113.45 billion.

Despite this, China remains India's second largest trading partner with bilateral trade of $127.7 billion. This situation shows that India is still dependent on China for many essential commodities, due to which the trade deficit is increasing.

UAE becomes third largest partner

The United Arab Emirates (UAE) has also maintained its strong presence with trade of $100.5 billion with India and remains the third largest trading partner. This shows that India's economic relations with the Gulf countries are also continuously getting stronger.

Future direction: Target of $500 billion by 2030

A comprehensive trade agreement is being negotiated to further strengthen trade cooperation between India and the US. Experts believe that through this agreement, both the countries are aiming to take bilateral trade to $500 billion by 2030. This will not only be beneficial for the economies of both the countries, but will also strengthen the global supply chain.

China's attempt to change strategy

Meanwhile, the ongoing trade dispute between the US and China has taken a new turn. China has replaced its top trade negotiator and appointed Li Chenggang as the new representative. This move has come at a time when the US has imposed heavy duties on imports from China, due to which Chinese products have to pay tariffs of up to 145 percent in the US. This is being seen as a possible change in China's trade strategy.