They also help great trade relationships and not only that also share new ideas and inventions.
The last few years have been great for the trade and political relationship between India and USA because of many things like liberalization and have grown by nearly 60 % with worth 180 million $.
In this blog we will look at the trade relationship between the two countries as well as the main sectors they trade in, challenges they face and future that both hold together.
Overview and History
India has been exporting lots of goods to USA from many years but exports from USA were lower before Because of different development levels and economic zonez as well .
There were some conflicts before as well due to different interests and expectations that people had . But they were solved after soon
There was another time when the trade betwenn these countries declined once again and that was the time when donald trump was the president .
However the president of USA and Sh Narendra Modi seemed to have bonded well but it was not very beneficial for India or it's trade .
Talking of now in the year 2023 the trade relationship between the countries are stable and have growth potentials as well
Important sectors
USA and India have been supporting each other in many activities the most important sector for both the countries is the IT sector .
Since India is the hub for good IT services and less expensive USA outsources their IT needs to India to cut costs and run profitable businesses .
Another sector in which both countries mostly deal in is Pharmaceuticals sector. The medicines and healthcare products that are made in India are of the highest quality and are cheaper for the USA to import them.
The export and import data shows that the quality of the products is what make these products high in demand .
Political intentions
Other than only commercial trade the USA and India are defence alliances .
This means that they help each other with armies and defence related goods and help each during crises like food shortage or war related problems .
No matter how hard the conditions are USA and India will help each other to maintain peace and harmony .
Challenges they face
One of the biggest challenges that both countries face is the difference in both economies and trading or tax policies .
The US economy is more market oriented whereas the Indian economy is a more regulated economy. This can be a hurdle in trade for businesses in both the countries .
Another challenge that they face is different taxes and quotas . The value of taxes varies from country to country .
Like in India there is a tax called GST which is mandatory for businesses to pay .
Last but not the least the difference in rules and regulations and quality standards can also become a challenge .
To match the standards one needs to work very hard and reasearch a lot using the global import export data .
Growth opportunity
There is a scope of lot of growth in the trade relationship between USA and India . As both governments are working hard toward improving the relationship of the country .
The import export data suggests that India has great potential to export into markets like garments, gems and jewelry and chemical sectors in The US .
For more such trade related information visit siomex . It is a leading import and export data provider in India