India's trade with the USA is on the upswing with robust growth being recorded in December in the bilateral exports of the two countries despite the disruption in shipping due to geopolitical tensions.
India's merchandise exports to the USA shot up by 8.5 per cent to $7 billion in December, according to the official figures.
Comparitvely, US export to India picked up in the month of December growing almost 10 percent to nearly $3.77 billion. Top items included petroleum, petroleum products, coal, coke and electric machinery/equipment.
One of the senor officials drew attention to it shows Indian also providing markets for American Goods, hence one-way traffic instead there is an all round relations with both economies enjoying benefits at Gains from trade, he added.
The bilateral trade between India and the US during the first nine months of the current financial year (April-December) 2024-25 touched 93.4 billion which comes close to the figure for India's trade with China at $94.6 billion during this period.
India's electronic exports to the US jumped by a robust 27.4 per cent to $22.5 billion in April-November of 2024-25, from $17.66 billion during the same period in 2023-24.
There has been steady growth in the sector for the last two years as electronics exports from India to the US saw a surge over two-fold year-on-year at $6.6 billion during January-September 2023, industry body ICEA has stated.
The spurt in electronic exports comes at a time after the sanctions placed against China at the fag end of President Donald Trump's first administration, continued under Joe Biden.
With US companies like tech giant Apple looking to set up supply chains outside China, India with its large domestic market has emerged as an alternative destination.
India's electronics exports to the US increased by $7.9 billion, accounting for over 62 per cent of the increase in the trade surplus between the two countries.
Electronic goods have now moved up to the third position among the top performers in India's export sector, next only to engineering products and petroleum, from the sixth position last year.
Within the electronics sector, smartphone exports have recorded a 45 per cent increase in exports as leading players such as Apple and Samsung expand production in the country.
Apple's entry into India, supported by its vendors Foxconn, Pegatron, and Tata Electronics, has boosted smartphone exports this year. Exports of consumer electronics, solar modules, desktops, and routers have also recorded significant growth.
Electronics exports are expected to further accelerate ahead as semiconductor manufacturing capacities are now being set up in the country, the official said.
Apparel exports from India have also recorded a double-digit growth of 11.6 per cent to $11.31 billion during April-December of the current financial year driven by demand in leading markets such as the US, the UK, and Germany.
Apparel Export Promotion Council (AEPC) chairman Sudhir Sekhri said the robust growth and long-term outlook for Indian apparel exports remains positive, largely on account of improved product acceptance, adaptability to changing consumer trends, focus of factories on compliance besides industry-friendly policies of the government.
Read also| Gold Prices Reach Record High Amid Global Uncertainties
Read also| NSE Achieves Milestone as Unique Investor Base Crosses 11 Crore for the First Time