Does America become the largest trading partner of India?
The closeness between India and America has increased in recent decades and now the friendship between India and America is writing a new story. Especially on the economic front, both the countries are becoming strong partners with each other. In fact, in the last financial year 2021-22, America has done more business with India than China. This shows the strong economic ties between the two countries.
In such a situation, China has become completely worried
about the increasing trading partnership between India and America. According
to the data from the Ministry of Commerce, the bilateral trade between the US
and India increased to $ 119.42 billion in 2022, from $ 80.51 billion in 2020-21.
Apart from this, India's exports to the US increased to $ 66.11 billion in
2021-22, which was $51.62 billion in the previous financial year.
At the same time, India's imports from the US increased to $
43.31 billion in 2021-22, from $ 29 billion in the previous financial year. On
the other hand, if we talk about India-China bilateral trade, it has been less
than America. If we look at the figures, the bilateral trade between India and
China was $ 115.42 billion in 2020-21, which was $ 86.4 billion in 2021.
India's exports to China increased marginally to $21.25 billion during this
fiscal year from $21.18 billion in 2020-21.
At the same time, India's imports from China increased to $ 94.19 billion, which was $ 65.21 billion in 2021. During the fiscal year, India's trade deficit with China increased to $ 72.91 billion, which was $ 72.20 billion was $44 billion. White Exports believes that India's market trade with the US will continue to grow in the coming years as India and the US continue to strengthen their economic ties.
Khalid Khan, Vice President, The Federation of Indian Export Organizations said that India has emerged as a reliable trading partner and
global companies are reducing their dependence on China. The global company is
diversifying its business in India and other countries. He said that India-US
bilateral trade will increase further in the coming years.
India has joined the Indo-Pacific Economic Framework
Initiative of the US. This will further strengthen the economic relationship.
Rakesh Mohan Joshi, Director, Indian Institute of Plantation Management (IIPM
Bangalore) said that India is the third-largest consumer market in the world
with a population of 1.3 90 billion. Due to the rapidly growing economy,
companies in America and India have a lot of opportunities for technology,
transactions, manufacturing, trade, and investment.
He said that mainly petroleum products, polished diamonds,
pharma products, jewelry, light oil, etc. are exported to America from India. At
the same time, India imports petroleum products, liquid, natural gas, gold,
coal, and almonds from America. Let us tell you that America is one of the few
countries with which India has a trend surplus. India had a trade surplus of
$32.8 billion with the United States in the year 2021-22.
The data shows that from 2013-14 to 2017-18 and from 2020-to
21 also, India's top trade partners were China. Before China, the UAE was the
country's largest partner. The United Arab Emirates was India's third-largest
trade partner in 2021-22 with $72.9 billion. It is followed by Saudi Arabia
with $42.85 billion, Iraq with $34.33 billion, and Singapore with $30 billion.
Will Apple do business in India after leaving China?
Strict restrictions are still imposed in China regarding
covid. Meanwhile, the now-famous company Apple has spoken of doing business
outside China. The Wall Street Journal report said that the company has told
some of its contract manufacturers that they want to increase their production
outside China. It has also been said in this report that the company can move
to countries like India and Vietnam for this.
Now the question arises why did Apple, one of the largest US
companies, take such a decision? Two important things are being said about
this. First, and foremost, China is indirectly helping Russia in the ongoing
conflict between Russia and Ukraine. After which many Western companies want to
reduce the dependence of their production on China. Apart from this, there are
restrictions in many cities because of the crude of China.
Because of this, these companies are suffering. According to experts, 90% of the appealing iPhone, iPad, and MacBook laptops have been made in China. Speaking about the challenges associated with Apple's supply chain in April, Tim Cook, the company's chief executive officer, said that our supply chain is truly global, and that is why our portals are built everywhere. We are constantly looking to increase it.
Because of the rules related to Corona in China, there is a lockdown in Shanghai and other cities, due to which the supply chain of many companies has been affected. Due to the ongoing restrictions in China, now big companies like Apple are not able to send their executives and engineers there for the last two years. This means that the company is not able to gather correct information about the production sites in China.
After China, the company is looking toward India with hope. The population of both countries is almost equal and both the countries also offer a low price to Apple to start the production. A person with knowledge of the matter was quoted as saying that the Apple company is in discussion with some of its suppliers regarding its production and business in India.
Let us tell you that India made 3.1% of the world's iPhones last year and this year this target has been kept from 6 to 7%. Some experts believe that some assemblers based in China may face difficulties in expanding their shops in India. This is because relations between New Delhi and Beijing have been going sour for some time. Let us tell you that after the tension between the two countries on the border in 2020, the relations between both countries have come to a standstill.
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