A high-level business delegation, led by U.S. Secretary of Commerce Gary Locke, will visit New Delhi, Bangalore and Mumbai during February of 2011 with a view to increasing American exports to India in a number of high technology sectors, including:
- Civil-nuclear trade
- Defense and security
- Civil aviation
- Information and communication
A statement by Gary Locke said, “Increasing trade between the U.S. and India will help drive innovation and create jobs in both countries. As trading partners, U.S. companies can help India meet the ambitious economic and social goals laid out by its government…”
India's Potential for Growth
India should see, “high levels of growth continuing over the medium term,” say the International Monetary Fund (IMF). However despite the potential for continued growth in the Indian economy, the IMF has also expressed some misgivings about market condition in the country. In particular they are concerned about high levels of government debt, inflation, subsidy reforms and social conditions. Gross Domestic Product (GDP) in India, is predicted to grow almost nine percent during 2010/11.
The Indian government (Embassy of India, Washington D C) has said that India - U.S. relations have seen a, “remarkable transformation” over the last ten years and bilateral trade has played an important part in that increasingly warm relationship.
U.S. politicians see exports as key to the revival of the American economy, indeed President Obama, in a bid to boost the number of U.S. jobs, has set an ambitious target of doubling exports, as part of his National Export Initiative (NEI), by 2015.
Currently the major export sectors from the U.S. to India are:
- Precious stones and metals (23%)
- Machinery (13.6%)
- Electrical machinery (7.1%)
- Aircraft, spacecraft (6.8%)
- Optical instruments and equipment (5.7%)
- Mineral fuel, oil, etc (5.5%)
- Fertilizers (6%)
(Statistics cover the period Jan – Oct 2010 and are courtesy of U.S. Department of Commerce, Bureau of Census)
U.S. Exports to India
U.S. exports to India were up 17.5% in the first eight months of 2010 and bilateral U.S - India Merchandise Trade currently amounts to $43.13 billion and could be as high as $50 billion, underpinned by, “advanced technologies,” say American government sources.
Indian Market is a Lucrative Opportunity for U.S. Exporters
Unquestionably India offers U.S exporters a tremendous opportunity. Export.gov, an organization which helps American companies to export, says the, “Indian market, with its one billion plus population, presents lucrative and diverse opportunities for U.S. exporters with the right products, services and commitment…”
The sub-continent is the world’s largest democracy, tenth largest economy and in terms of purchasing power, the fourth largest economy. It’s a vibrant and commercially attractive platform for American companies to build a productive business relationship.
Further International Trade Reading:
- Rise in Surface Transportation Between NAFTA Members
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- Americans Seeking Surgery Abroad Stimulates Jordanian Economy
- Overview of Trade and Investment Opportunities in Kurdistan
Sources:
IMF Survey Magazine: Countries and Regions, India: Rapid Growth with Promising Medium-term Prospects, International Monetary Fund, 5 January 2011
International Trade Administration, U.S. Department of Commerce High Technology Mission to India, site accessed 18 January 2011
Embassy of India (Washington D C), Overview of U.S. Bilateral Trade, site accessed 18 January 2011
Export.gov, Doing Business in India, site accessed 18 January 2011
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