India and the United States have witnessed remarkable growth in their bilateral trade during December 2024, despite challenges such as shipping disruptions caused by global geopolitical tensions. The trade figures highlight the strengthening economic ties between the two nations.
India’s merchandise exports to the US increased by 8.5% in December, reaching $7 billion. This growth reflects the expanding demand for Indian goods in the US market. On the other hand, US exports to India grew by nearly 10% during the same period, totaling $3.77 billion. Key imports from the US included petroleum products, coal, coke, and electric machinery.
A senior official emphasized that the trade relationship is mutually beneficial, as both countries are gaining from this economic partnership.
Bilateral Trade Nears China Trade Levels
During the first nine months of the financial year 2024-25 (April-December), India-US bilateral trade reached $93.4 billion, closely trailing India’s trade with China, which stood at $94.6 billion for the same period. This indicates the growing importance of the US as a trading partner for India.
India’s electronics exports to the US have shown remarkable growth, increasing by 27.4% to $22.5 billion during April-November 2024-25, compared to $17.66 billion in the same period of 2023-24. This surge follows the sanctions imposed on China during Donald Trump’s presidency, which continued under Joe Biden’s administration.
With major companies like Apple shifting their supply chains outside China, India has emerged as an attractive destination for manufacturing. Apple’s production expansion in India, supported by partners like Foxconn, Pegatron, and Tata Electronics, has boosted smartphone exports, which have grown by 45%.
Electronics Sector Becomes Key Performer
Electronic goods now rank third among India’s top export categories, following engineering products and petroleum. This is a significant improvement from their sixth position last year. Other electronics, such as solar modules, desktops, and routers, have also contributed to this growth.
Semiconductor manufacturing capacities being set up in India are expected to further accelerate electronics exports in the coming years.
India’s apparel exports have recorded an 11.6% increase, reaching $11.31 billion during April-December 2024-25. Key markets driving this growth include the US, the UK, and Germany.
Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), highlighted the positive long-term outlook for Indian apparel exports. Factors such as improved product quality, adaptability to consumer trends, compliance with global standards, and supportive government policies are driving this growth.
The robust growth in India-US trade underscores the strengthening economic ties between the two nations. With sectors like electronics and apparel leading the way, the partnership is expected to grow even further, benefiting both economies.
