In the latest trade between India and USA, the bilateral trade in goods has now crossed the $100 billion mark in 2021. This now makes it one of the largest goods trade within a calendar year.
The news: The India-U.S. economic history of a single year has hit a new all-time high as the two countries sign the latest trade deal.
- This deal has taken a huge jump of 45 per cent compared to the year 2020.
- The USA trade with its 15 parents has also increased.
- For India it was the single biggest jump.
What is going on: The figures which were released by the U.S. census Bureau, the India-U.S. deal was worth $113.391 billion from January to December 2021.
- India has till now exported goods worth over $73 billion. Meanwhile, the country has imported goods worth around $40 billion.
- Because of the pandemic and subsequent economic restrictions, trade fell to a little more than $78.2 billion in 2020, down from a high of $92.1 billion in 2019.
- India had then exported $57.8 billion in goods and imported $34.2 billion in goods.
What Are they saying: Richard M Rossow, the Wadhwani chair in U.S.-India Policy Studies at the Center for Strategic and International Studies (CSIS) and the foremost expert on the bilateral economic relationship in Washington DC, stated that bilateral trade has been on an upward trajectory for 20 years and has only shrunk year on year three times since 2002.
Rossow even added, “While we should certainly take a moment to celebrate the milestone of crossing $100 billion in bilateral trade, it is not far off the overall trajectory of the trade relationship during this period.”
According to him the 45 per cent increase was due to the “deep trough” in 2020, as both India and the United States were dealing with the initial onslaught of the coronavirus pandemic.