India-America Trade relations
For the starters, United States is India’s largest trading partner.
India’s major exports to US – include Information Technology Services, textiles, machinery, ITeS, gems and diamonds, chemicals, iron and steel products, coffee, tea, and other edible food products.
India’s major imports from US – aircraft, fertilizers, computer hardware, scrap metal and medical equipments.
Additionally, America is also India’s largest investment partner. Americans have made significant investments in India’s power generation, telecommunications, ports, roads, petroleum exploration/processing, and mining industries.
India and US have signed a new Trade Policy Forum. The sub-divisions include: Agricultural Trade Group and Tariff and Non-Tariff Barriers group.
Agricultural Trade Group- The group specially focuses on three objectives: approving on terms that will facilitate India to export mangoes to the United States, thereby sanctioning Agricultural and Process Food Products Export Development Authority (APEDA) to vouch Indian products to the standards of the U.S. Department of Agriculture, and implementing procedures for approving edible wax on fruit.
Tariff and Non-Tariff Barriers group – Insecticides manufactured by United States could be sold across the length and breadth of the country. Also, India has also agreed to cut regulations on buy/sell of carbonated drinks. Many medicinal drugs and lowering regulations on products those are not agricultural produce.
Both countries expressed interest in promoting small business initiatives in both countries by enabling trade between them..
The percentage of traded items from India to US
1. Diamonds & precious stones (25%)
2. Textiles (29.01%)
3. Iron & Steel (5.81%)
4. Organic chemicals (4.3%)
5. Machinery (4.6%)
6. Electrical Machinery (4.28%)
The percentage of traded items from US to India
1. Engineering goods & machinery (including electrical) (31.2%)
2. Precious stones & metals (8.01%)
3. Organic chemicals (4.98%)
4. Optical instruments & equipment (7.33%)
5. Aviation & aircraft ( 16.8%)
Export of Indian Agro Exports to US
The export of Indian Agro products to US forms a significant component of Indian exports to US. The Indian government apparently plays an important role in the expansion and diversification of the agricultural products and food processing industrial sector of the country. It is reportedly one of the largest in terms of production, consumption, export and growth.
The main items of Indian Agro Exports to US are:
o Rice and rice products
o Fresh vegetables
o Fresh fruits like mangoes, mango pulp, and grapes