Regardless of the American government, India’s economic ties with the US have been strengthening for more than 20 years. Between 2001 and 2023, the US’s imports from India grew at a compound annual growth rate (CAGR) of 10.48%. However, during the same time period, the United States’ global import growth rate increased at a CAGR of just 4.76 percent.
The US has demonstrated a consistent and increasing demand for Indian commodities since 2001, as evidenced by the sharp increase in imports. The United States imported $9.7 billion worth of goods from India in 2001, which was only 0.9% of its total imports worldwide. The amount reached $87.3 billion by 2023, accounting for 2.8% of global imports into the US.
India’s biggest export market and trading partner is the United States. Additionally, it is the fourth-largest import source for India. The value of trade between the two countries was close to $120 billion in the fiscal year 2023–2024. India has a $35.3 billion surplus in trade, which is in its favor.