India-USA Trade.pdf
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THE RECENT visit of US President Barack Obama to India put the bilateral economic relations into the spotlight. As Table 1 shows, India exports more to the US than it imports – a gap that has been widening over time. In fact, exports to the US have been expanding as a share of India’s exports, according to Table 2 – whereas, as a share of total Indian imports, those from the US have been nearly flat or declining for the same period. The compositio n of US-India trade has not remained identical over the past 10 years. Machinery and gems continue to dominate the top 5 import categories, in Table 3 – but in recent years, mineral fuels and oils have joined them, indicating the changing nature of the US economy. Meanwhile, in Table 4, apparel has dropped off the top 5 exports – an indication of the problems of competitiven ess in India’s apparel industry. As if in counterweight to the balance of trade surplus, the US is a major source of foreign direct investment (FDI); Table 5 shows how FDI from the US, which slowed to a crawl in 2012-13, is now recovering. In this financial year so far, the US has returned to providing a share of inward net FDI that it has not for four years, according to Table 6. Also on the agenda for talks during Obama’s visit was the issue of Indian guest workers in the US. As Table 7 shows, the number of H1-B petitions approved has risen steadily in the past few years – and India now gets almost two-thirds of the total H1-B permissions, according to Table 8. STATSGURU: Taking stock of India’s economic rela tions with the US Compiled by BS Research Bureau StatsGuru is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines Source: Ministry of Commerce 2: EXPORTS TO US HAVE BEEN RISING, IMPORTS FALLING India-UStrade as percentage ofIndia’s total trade (%) Source: Ministry of Commerce 1: INDIA EXPORTS MORE TO TH E US THAN IT IMPORTS Value of India-UStrade ($ mn) 4: APPA REL DOESN’T FIGURE AMONG T OP 5 EXPORTS TO TH E US ANY MORE Top 5 sectors byexports to the US (% share) Source: Department of Industrial Policy & Promotion 5: FDI FLOWS FROM THE US RECOVERING AFTER ‘12-13 FDI equity inflows fr om the US ($ mn) Source: Ministry of Commerce 200 4-2005 Natural/cultured pearls, precious/semiprecious stones 29.51 Apparel & clothing accessories (not knitted or crochet ed) 10.19 Other made up textile articles 5.77 Iron & Steel 4.92 Apparel & clothing accessories (knitted or crocheted) 4.28 2009-2010 Natural/cultured pearls, precious/semiprecious stones 24.27 Apparel & clothing accessories (not knitted or crochet ed) 7.65 Pharmaceutic al products 6.39 Apparel & clothing accessories (knitted or crocheted) 5.96 Electrical machi nery & parts; sound recorders 5.83 2014-2015(Apr-Oc t) Natural/cultured pearls, precious/semiprecious stones 20.10 Mineral fuels, mineral oils & products 11.57 Pharmaceutic al products 8.88 Other made up textile articles 5.01 Nuclear reactors, boilers & machinery 4.63 3: MACHINERY & GEMS DOMINATE IMPO RTS, MINERAL FUELS & OILS HAVE CAUGHT UP Top 5 sectors by imports from the US (% share) Source: Ministry of Commerce 200 4-2005 Nuclear reactors, boilers & machinery 17.77 Electrical mach inery & parts; sound recorders & reproducers 14.79 Aircraft, spacecraft & parts 10.23 Optical, medical or surgical instruments 7.10 Natural/cultur ed pearls, precious/semiprecious stones 6.00 2009-2010 Nuclear reactors, boilers & machinery 15.17 Aircraft, spacecraft & parts 13.99 Natural/cultur ed pearls, precious/semiprecious stones 8.87 Electrical machi nery & parts; sound recorders & reproducers 7.01 Fertilisers 5.92 2014-2015(Apr-Oc t) Natural/cultur ed pearls, precious/semiprecious stones 14.55 Nuclear reactors, boilers & machinery 13.67 Aircraft, spacecraft & parts 10.84 Electrical machi nery & parts; sound recorders & reproducers 7.73 Mineral fuels, mineral oils & products 7.47 Source: USCIS Program Reports: H-1B & H-2B 8: ...WITH INDIANS GETTING THE BULK OF SUCH VISAS H-1B petitions approved for Indians as percentage oftotal approved petitions (%) 7: NUMBER OF H1-B PETITIONS HAS STEADIL Y RISEN... H-1B petit ions appro ved bycountry of birth (India) (numbers) Source: USCIS Program Reports: H-1B & H-2B Source: Department of Industrial Policy & Promotion 6: US’ SHARE IN FDI FLOWS TO INDIA IS IMPROVING FDI equityinflows from the US as percent age oftotal FDI (%)
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Transcript of India-USA Trade.pdf
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THE RECENT visit of US President Barack Obama to Indiaput the bilateral economic relations into the spotlight.
As Table 1 shows, India exports more to the US than it imports a gap thathas been widening over time. In fact, exports to the US have beenexpanding as a share of Indias exports, according to Table 2 whereas, asa share of total Indian imports, those from the US have been nearly flat ordeclining for the same period. The composition of US-India trade has not
remained identical over the past 10 years. Machinery and gems continueto dominate the top 5 import categories, in Table 3 but in recent years,mineral fuels and oils have joined them, indicating the changing nature ofthe US economy. Meanwhile, in Table 4, apparel has dropped off the top 5exports an indication of the problems of competitiveness in Indiasapparel industry. As if in counterweight to the balance of trade surplus,the US is a major source of foreign direct investment (FDI); Table 5 shows
how FDI from the US, which slowed to a crawl in 2012-13, is nowrecovering. In this financial year so far, the US has returned to providing ashare of inward net FDI that it has not for four years, according to Table 6.Also on the agenda for talks during Obamas visit was the issue of Indianguest workers in the US. As Table 7 shows, the number of H1-B petitionsapproved has risen steadily in the past few years and India now getsalmost two-thirds of the total H1-B permissions, according to Table 8.
STATSGURU: Taking stock of Indias economic relations with the US
Compiled by BS Research BureauStatsGuru is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines
Source: Ministry of Commerce
2: EXPORTS TO US HAVE BEEN RISING, IMPORTS FALLINGIndia-US trade as percentage of Indias total trade (%)
Source: Ministry of Commerce
1: INDIA EXPORTS MORE TO THE US THAN IT IMPORTSValue of India-US trade ($ mn)
4: APPAREL DOESNT FIGURE AMONG TOP 5 EXPORTS TO THE US ANY MORETop 5 sectors byexports to the US (% share)
Source: Department of Industrial Policy & Promotion
5: FDI FLOWS FROM THE US RECOVERING AFTER 12-13FDI equity inflows from the US ($ mn)
Source: Ministry of Commerce
22000044--22000055
Natural/cultured pearls, precious/semiprecious stones 29.51Apparel & clothing accessories (not knitted or crocheted) 10.19Other made up textile articles 5.77Iron & Steel 4.92Apparel & clothing accessories (knitted or crocheted) 4.28
22000099--22001100
Natural/cultured pearls, precious/semiprecious stones 24.27Apparel & clothing accessories (not knitted or crocheted) 7.65Pharmaceutical products 6.39Apparel & clothing accessories (knitted or crocheted) 5.96Electrical machinery & parts; sound recorders 5.83
22001144--22001155((AApprr--OOcctt))
Natural/cultured pearls, precious/semiprecious stones 20.10Mineral fuels, mineral oils & products 11.57Pharmaceutical products 8.88Other made up textile articles 5.01Nuclear reactors, boilers & machinery 4.63
3: MACHINERY & GEMS DOMINATE IMPORTS, MINERAL FUELS & OILS HAVE CAUGHT UPTop 5 sectors by imports from the US (% share)
Source: Ministry of Commerce
22000044--22000055
Nuclear reactors, boilers & machinery 17.77Electrical machinery & parts; sound recorders & reproducers 14.79Aircraft, spacecraft & parts 10.23Optical, medical or surgical instruments 7.10Natural/cultured pearls, precious/semiprecious stones 6.00
22000099--22001100
Nuclear reactors, boilers & machinery 15.17Aircraft, spacecraft & parts 13.99Natural/cultured pearls, precious/semiprecious stones 8.87Electrical machinery & parts; sound recorders & reproducers 7.01Fertilisers 5.92
22001144--22001155((AApprr--OOcctt))
Natural/cultured pearls, precious/semiprecious stones 14.55Nuclear reactors, boilers & machinery 13.67Aircraft, spacecraft & parts 10.84Electrical machinery & parts; sound recorders & reproducers 7.73Mineral fuels, mineral oils & products 7.47
Source: USCIS Program Reports: H-1B & H-2B
8: ...WITH INDIANS GETTING THE BULK OF SUCH VISASH-1B petitions approved for Indians as percentage of total approved petitions (%)
7: NUMBER OF H1-B PETITIONS HAS STEADILY RISEN...H-1B petitions approved bycountryofbirth (India) (numbers)
Source: USCIS Program Reports: H-1B & H-2B Source: Department of Industrial Policy & Promotion
6: US SHARE IN FDI FLOWS TO INDIA IS IMPROVING FDI equity inflows from the USas percentage of total FDI (%)
