The US-India Strategic Partnership Forum (USISPF) estimates that the US-India bilateral trade is likely to grow from the current level of $143 billion to $238 billion by 2025 if the current AAGR of 7.5 percent (between 2012 – 2018) is maintained.
If higher AAGR of 10 percent to 12.5 percent is achieved (as witnessed in 2017 and 2018), then the bilateral trade between the two countries has the potential to range between $283 billion – $327 billion by 2025.
Speaking on this, USISPF Chair, John Chambers said that Prime Minister Narendra Modi’s re-election is the start of a new era for India and US-India relations.
“While India’s ambition to become a $5 trillion economy by 2025 is certainly welcome for businesses, government, and individual citizens in the US and India, it is essential that we level the playing field and stay away from protectionism. I am confident that we can achieve $327 billion in bilateral trade by 2025 if we grow at 13 percent every year,” John added while speaking at USISPF’s second annual leadership summit on Thursday in Washington, D.C.
Sectors such as defence trade, commercial aircrafts, oil and LNG, coal, machinery and electronics are areas of potential growth in US investments and commerce into India. Similarly, the Indian industry has an opportunity to promote the automotive, pharmaceuticals, seafood, IT, and travel services to the US market.
In 2018, US exports of goods and services to India totalled $58.8 billion, registering a robust 19.1 percent increase from $49.3 billion in 2017, and total US imports from India, at $84 billion, rose 9.4 percent from $76.8 billion in 2017.
The US-India Strategic Partnership Forum is committed to creating a powerful strategic partnership between the US and India. Headquartered in Washington, D.C., USISPF has offices in New York, Silicon Valley, Mumbai, and New Delhi.
USISPF President and CEO Mukesh Aghi said,
“Next week, the Atlantic Council and the Forum will release a report with recommendations to both governments on how to advance the bilateral trade relationship. We will also release recommendations on growing US-India cooperation in high-technology manufacturing sectors, such as aerospace and medical devices.”