Why is this page text-only?

Saturday, 21 November 2009   |   Last Updated: 27 July 2009

 

India

India FlagBilateral Investment

Increasingly important is the flow of investment between the United States and India. While the U.S. is one of India's top investors, India also is a noteworthy source of investment into the United States. In 2007 (latest data available), U.S. foreign direct investment (FDI) in India was $13.6 billion (a 48% increase over 2006) and Indian FDI in the U.S. totaled $3 billion (a 106% increase from 2006).

Initiatives

Since Indian Prime Minister Singh's visit to the United States in July 2005, during which a number of trade and economic initiatives were announced, USTR has engaged with India on trade and investment matters through a number of venues.

U.S.-India Trade Policy Forum (TPF)

An interagency collaboration, the USTR-led TPF is the principal trade dialogue between the United States and India. It has five Focus Groups: Agriculture, Investment, Innovation & Creativity (intellectual property rights), Services, and Tariff & Non-Tariff Barriers. U.S. and Indian Focus Group chairs meet periodically to work towards resolution of issues that impede trade and investment flows. Five ministerial-level meetings were held between 2005 and 2008, and success was achieved to usher in U.S. apple and almond exports to India and Indian mango exports to the United States; and an increase in the cap on FDI in the Indian telecommunications sector.

Private Sector Advisory Group (PSAG)

Composed of leading trade experts in the United States and India, the PSAG was created in 2007 to provide strategic recommendations to the Trade Policy Forum. The groups outlined issues including financial sector reform, energy cooperation, higher education, and globalization & inclusiveness, all with a mind to enhance the bilateral trade relationship.

U.S.-India Economic Dialogue and CEO Forum

The White House-led Economic Dialogue served as the government-to-government forum on bilateral economic issues and was the umbrella mechanism for the Trade Policy Forum and several other bilateral dialogues led by other agencies. The CEO Forum comprised CEOs from the U.S. and India - representing a cross-section of sectors - who exchanged business community views on a number of key economic priorities and presented recommendations to the U.S. and Indian governments designed to improve the commercial climate between the two countries.

The recommendations covered the breadth of the U.S.-India economic relationship and aimed to enhance economic growth, job creation, and to promote bilateral trade and investment. The U.S. Trade Representative, the Commerce and Treasury Secretaries and the National Economic Council Chairman participated in both discussions as did India's Deputy Chairman of the Planning Commission and Ministers of Finance and Commerce.

Bilateral Investment Treaty (BIT)

In 2008, the United States and India held two constructive rounds of exploratory talks on a treaty that would provide binding legal rules regarding one country's treatment and investments from another country. In September 2008, the two governments agreed to launch formal negotiations, which will begin in 2009.

U.S.-India Trade Facts

U.S. goods and services trade with India totaled $61 billion in 2007 (latest data available). Exports totaled $27 billion; Imports totaled $34 billion. The U.S. goods and services trade deficit with India was $7 billion in 2007.

India is currently our 18th largest goods trading partner with $43.4 billion in total (two ways) goods trade during 2008. Goods exports totaled $17.7 billion; Goods imports totaled $25.7 billion. The U.S. goods trade deficit with India was $8.0 billion in 2008.

Trade in services with India (exports and imports) totaled $19.0 billion in 2007 (latest data available). Services exports were $9.4 billion; Services imports were $9.6 billion. The U.S. services trade deficit with India was $251 million in 2007.

Exports

India was the United States' 17th largest goods export market in 2008.

U.S. goods exports to India in 2008 were $17.7 billion, up 0.5% ($94 million) from 2007, and up 671% from 1994 (the year prior to Uruguay Round). U.S. exports to India account for 1.4% of overall U.S. exports in 2008, up from 0.5% in 1994.

The top exports categories (2-digit HS) in 2008 were: Fertilizers ($2.8 billion), Precious Stones (diamonds) ($2.5 billion), Machinery ($2.3 billion), Aircraft ($1.8 billion), and Electrical Machinery ($1.3 billion).

U.S. exports of agricultural products to India totaled $489 million in 2008. Leading categories include: tree nuts ($187 million), cotton ($103 million), and pulses ($63 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to India were $9.4 billion in 2007 (latest data available), 37.1% ($2.5 billion) greater than 2006, and 664% ($8.1 billion) greater than 1994 levels. The other private services (education), and travel categories accounted for most of the U.S. exports in 2007.

Imports

India was the United States' 18th largest supplier of goods imports in 2008.

U.S. goods imports from India totaled $25.7 billion in 2008, up 6.8% ($1.6 billion) from 2007, up 385% over the last 14 years. U.S. imports from India account for 1.2% of overall U.S. imports in 2008, up from 0.8% in 1994.

The five largest import categories in 2008 were: Precious Stones (diamonds) ($5.6 billion), Woven Apparel ($1.8 billion), Iron and Steel ($1.7 billion), Organic Chemicals ($1.5 billion), and Machinery ($1.4 billion).

U.S. imports of agricultural products from India totaled $1.6 billion in 2008, the 16th largest supplier of Ag imports. Leading categories include: tree nuts ($243 million), spices ($179 million), and essential oils ($146 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $9.6 billion in 2007 (latest data available), up 25.6% ($2.0 billion) from 2006, and up 1,162% ($8.8 billion) from 1994. The other private services (business, professional, and technical services) and the travel categories accounted for most of U.S. services imports from India.

Trade Balance

The U.S. goods trade deficit with India was $8.0 billion in 2008 a 23.7% increase ($1.5 billion) over 2007.

The United States has a services trade deficit of $251 million with India in 2007 (latest data available).

Investment

U.S. foreign direct investment (FDI) in India was $13.6 billion in 2007 (latest data available), a 47.8% increase from 2006.

U.S. direct investment in India is primarily concentrated in the information, manufacturing, and banking sectors.

India FDI in the United States (stock) was $3.0 billion in 2007 (latest data available), up 106% from 2006.

India direct investment in the U.S. is primarily concentrated in the professional, scientific, and technical services sector.

Sales of services in India by majority U.S.-owned affiliates were $4.2 billion in 2006 (latest data available), while sales of services in the United States by majority India-owned firms were $3.1 billion.

 

*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services.