​5 biggest trades between India and US you didn’t know about​

Donald Trump has been re-elected as the 47th president of the US, defeating his democratic counterpart, Kamala Harris. His return to power is bound to send waves across the globe. Prime Minister Narendra Modi was amongst the first world leaders to congratulate Donald Trump on his “historic election victory”. In a post on X, Modi said, “Had a great conversation with my friend, President Donald Trump, congratulating him on his spectacular victory. Looking forward to working closely together once again to further strengthen India-US relations across technology, defence, energy, space and several other sectors.” During the Trump 1.0 rule, India and the US shared a good relationship which eventually smoothened trade paths for both. During his campaign, Trump proposed raising tariffs on foreign products, with a particular focus on imports from China, and promised to launch a large-scale deportation program aimed at removing all undocumented immigrants from the United States. It will be interesting to see how the India-US relation will pan out in the Trump 2.0 administration.

Trade with the United States is crucial for India as it provides a significant trade advantage, allowing India to export more than it imports from America. This relationship is vital for India's manufacturing sector and foreign exchange earnings. The US is the largest destination for Indian merchandise exports. In 2023-24, India’s imports from the United States reached $42.2 billion, while exports to the U.S. totaled $77.52 billion. The road has not always been smooth, but here is a list of 5 biggest trades between India and the US that you didn't know about.

In the fiscal year 2024, India's cut and polished diamond exports to the US were valued at $15.97 billion. India is one of the world’s largest exporters of cut and polished diamonds. The US is a major market for these diamonds, which are used in jewelry and industrial applications. The trade involves raw diamonds being imported to India, where they are cut and polished before being exported to the US.

In the year 2024, pharmaceutical products were amongst the top 3 most exported products from India and were valued at $6 billion. India is known as the “pharmacy of the world” due to its large-scale production of generic drugs. The US imports a significant amount of these pharmaceuticals, which include a wide range of medications from antibiotics to cancer treatments.

27 percent or $11 billion of the total U.S. exports to India were from the mineral fuels segment, chief among them crude oil, anthracite coal and natural gas in terms of commodity value.

In 2023, exports of electrical machinery and equipment, including parts, from the US to India were valued at $11 billion, whereas exports from India to the US were valued at $6.5 billions.

In the first seven months of 2024, India's exports of garments and textiles to the US grew by 9.3% to $48.2 billion. The US remains India's top trading partner.