New Delhi: India’s exports to the United States reached $77.5 billion in FY24, growing at a compound annual growth rate (CAGR) of 10.3% over the past 30 years, according to a Bank of Baroda report. The US now accounts for 18% of India’s total exports, reflecting its increasing importance as a trade partner.
The report highlights that exports to the US consistently outpaced overall export growth after the 2008 global financial crisis. This trend underscores the strengthening trade relationship between India and the US.
Key Commodities Driving Exports
In FY24, the top five export commodities to the US included drugs and pharmaceuticals, pearls and precious stones, petro products, telecom instruments, and ready-made garments. Together, these categories contributed 40% of India’s total exports to the US.
Other key exports include yarn, marine products, and electronic goods. However, electronic goods face stiff competition from other Asian countries. Industries like pharmaceuticals and garments have over 30% of their turnover tied to the US market, indicating a high dependency on American demand.
Need for Market Diversification
The US share of India’s exports has rebounded from a low of 10.1% in FY11, following the financial crisis, to 18% in FY24. Despite this growth, the report advises diversifying export markets to mitigate risks from over-reliance on a single destination, especially amid changing global political and economic dynamics.
India’s growing exports to the US demonstrate the market’s critical role in supporting Indian industries and driving overall export growth.
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