The bilateral trade between United States and India could reach USD 238 billion by 2025 from the current USD 143 billion given the present dynamics of the commercial engagement, a US-based India centric advocacy group.
This growth will occur if trade grows by 7.5 per cent each year, as has been the trend for the last seven years, the US India Strategic and Partnership Forum (USISPF) said in a report released on the occasion of its second annual leadership summit.
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The USISPF’s “US India Bilateral Trade Report” estimate also projects that, by 2025, bilateral trade could range between USD 283 billion to USD 327 billion, at an annual average growth rate of 10 per cent-12.5 per cent (as witnessed in 2017 and 2018).
“The assessment underscores pathways for growth and economic opportunity in our bilateral ties by highlighting current trends,” it said.
Sectors such as defence trade, commercial aircrafts, oil and LNG, coal, machinery and electronics are areas of potential growth in US investments and commerce into India.
Similarly, Indian industry has an opportunity to promote the automotive, pharmaceuticals, seafood, IT and travel services to the US market, the report said.
“In line with the current trends and huge impending deals in aerospace and petroleum & gas sectors between the two economies, the volume of bilateral trade is likely to increase in the short to medium terms,” the report said.
Observing that the US–India trade relationship stands solid today with a promising future, the report concluded that the latest trends in increasing volumes of bilateral trade between the two economies point to complementarity of commercial interests.
Reaching USD 238 billion by 2025 may not be very difficult to achieve given the present dynamics of the commercial engagement, it noted.
“The policy gaps in the trade dynamics of the two countries have led to several contentious issues albeit trade volumes have been steadily expanding, suggesting there is tremendous interest among the businesses from both sides and immense potential remains untapped. This potential may be unlocked with appropriate policy measures from both sides,” the report said.
About US India Strategic and Partnership Forum
The U.S.-India Strategic Partnership Forum (USISPF) is committed to creating the most powerful strategic partnership between the U.S. and India.
It is about business and government coming together in new ways
The main aim is to create meaningful opportunities that have the power to change the lives of citizens.
