India

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 2008, U.S. foreign direct investment (FDI) in India was $16.1 billion (a 10.8% increase over 2007) and Indian FDI in the U.S. totaled $4.5 billion (a 60.4% increase from 2007).

Initiatives

USTR engages with India on trade and investment matters through a number of venues as part of the U.S.-India Strategic Dialogue announced during Secretary of State Clinton's visit to India in July 2009.

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. Since its inception in 2005, success has been 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. The last ministerial level meeting in October 2009 ushered in a revitalized approach to the trade dialogue that emphasizes collaborative initiatives while also continuing to tackle ongoing concerns. For more information, click here.

On March 17, U.S. Trade Representative Ron Kirk and Indian Minister of Commerce and Industry Anand Sharma signed a "Framework for Cooperation on Trade and Investment." This agreement strengthens bilateral cooperation and seeks to build on recent rapid growth in U.S.-India trade, which has more than doubled over the past five years. In the first significant step taken under the Framework, Ambassador Kirk and Minister Sharma also announced the launch of an initiative called "Integrating U.S. and Indian Small Businesses into the Global Supply Chain," which will expand trade and job-creating opportunities for U.S. and Indian companies, big and small, and will directly support both President Obama's National Export Initiative and Prime Minister Singh's recently-introduced budget objectives.

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 group focuses on issues geared towards enhancing the bilateral trade relationship.

U.S.-India Economic Dialogue and CEO Forum

The White House-led Economic Dialogue serves as the government-to-government forum on bilateral economic issues and is the umbrella mechanism for the Trade Policy Forum and several other bilateral dialogues led by other agencies. The CEO Forum comprises CEOs from the U.S. and India - representing a cross-section of sectors - who exchange 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 cover the breadth of the U.S.-India economic relationship and aim 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. The first round was held in August 2009.

U.S.-India Trade Facts

U.S. goods and services trade with India totaled $60 billion in 2009 (latest data available for goods and services trade combined). Exports totaled $26 billion; Imports totaled $34 billion. The U.S. goods and services trade deficit with India was $7 billion in 2009.

India is currently our 12th largest goods trading partner with $48.8 billion in total (two ways) goods trade during 2010. Goods exports totaled $19.2 billion; Goods imports totaled $29.5 billion. The U.S. goods trade deficit with India was $10.3 billion in 2010.

Trade in services with India (exports and imports) totaled $22.3 billion in 2009 (latest data available for services trade). Services exports were $9.9 billion; Services imports were $12.4 billion. The U.S. services trade deficit with India was $2.4 billion in 2009.

Exports

India was the United States' 17th largest goods export market in 2010.

U.S. goods exports to India in 2010 were $19.2 billion, up 16.9% ($2.8 billion) from 2009, and up 738% from 1994 (the year prior to Uruguay Round). U.S. exports to India account for 1.5% of overall U.S. exports in 2010.

The top exports categories (2-digit HS) in 2010 were: Precious Stones (diamonds and gold) ($4.2 billion), Machinery ($2.7 billion), Electrical Machinery ($1.4 billion), Aircraft ($1.3 billion), and Fertilizers ($1.1 billion).

U.S. exports of agricultural products to India totaled $755 million in 2010. Leading categories include: tree nuts ($244 million), soybean oil ($133 million), pulses ($96 million), and cotton ($69 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to India were $9.9 billion in 2009 (latest data available), 2.1% ($213 million) less than 2008, but 712% greater than 1994 levels. Other private services (education), and travel categories accounted for most of the U.S. exports in 2009.

Imports

India was the United States' 14th largest supplier of goods imports in 2010.

U.S. goods imports from India totaled $29.5 billion in 2010, up 39.5% ($8.4 billion) from 2009, and up 457% over the last 16 years. U.S. imports from India account for 1.5% of overall U.S. imports in 2010.

The five largest import categories in 2010 were: Precious Stones (diamonds) ($6.9 billion), Pharmaceutical Products ($2.4 billion), Mineral Fuel (oil) ($2.3 billion), Woven Apparel ($1.7 billion),and Organic Chemicals ($1.7 billion).

U.S. imports of agricultural products from India totaled $1.6 billion in 2010, the 16th largest supplier of Ag imports. Leading categories include: tree nuts ($191 million), spices ($162 million), essential oils ($122 million), rice ($110 million), and processed fruits and vegetables ($102 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $12.4 billion in 2009 (latest data available), down 0.7% ($85 million) from 2008, but up 1,526% from 1994. The other private services (business, professional, and technical services--computer and data processing 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 $10.3 billion in 2010 a 118.2% increase ($5.6 billion) over 2009.

The United States has a services trade deficit of $2.4 billion with India in 2009 (latest data available).

Investment

U.S. foreign direct investment (FDI) in India was $18.6 billion in 2009 (latest data available), a 12.3% increase from 2008.

U.S. direct investment in India is led by the information, manufacturing, banking, and professional, scientific, and technical services sectors.

India FDI in the United States (stock) was $4.4 billion in 2009 (latest data available), up 12.4% from 2008.

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 $9.3 billion in 2008 (latest data available), while sales of services in the United States by majority India-owned firms were $6.4 billion.

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