The economic relationship between the United States and India has grown significantly over the past few decades, characterized by a robust trade exchange. India has emerged as one of the key suppliers of various goods to the US market.
The diverse range of products the US imports from India highlights the complementary nature of the two economies. Here, we delve into the major categories of imports from India to the USA.
Information Technology and Software Services
India is renowned for its IT and software services, and the USA is one of the largest consumers of these services. The export of IT services from India to the US accounts for a substantial part of India’s GDP. This sector includes software development, IT consulting, and business process outsourcing (BPO). In 2022-23, the US accounted for $106 billion, or 54.92%, of India’s software exports.
Pharmaceuticals
India is known as the “pharmacy of the world” due to its large-scale production of generic drugs and vaccines. According to the United Nations COMTRADE database, India exported $7.54 billion worth of pharmaceutical products to the United States in 2023, making the US its largest trading partner for these goods. This represented over 34% of India’s total pharmaceutical exports. Indian pharmaceutical companies like Sun Pharma, Dr. Reddy’s Laboratories, and Cipla are major suppliers of generic medications in the US market.
Textiles and Apparel
The textile and apparel sector is one of the oldest industries in India and a major contributor to its export economy. The USA imports a wide range of textile products from India, including cotton garments, home textiles, and synthetic fabrics. In 2022, India exported $10.7 billion worth of textiles and apparel to the USA, making it the country’s largest market with a 35.89% share. This marked a 66% increase compared to the previous two years.
Precious Stones and Jewelry
India is renowned for its diamond-cutting and polishing industry. The USA was the largest importer of Indian jewelry in 2023-24 (up to February 2024), with imports valued at $9.13 billion. This category includes diamonds, gold jewelry, and other precious stones.
Organic Chemicals
These chemicals are used in a variety of industries, including pharmaceuticals, agriculture, and manufacturing. In 2023, the export of organic chemicals from India to the USA was valued at around $2.55 billion. This includes a wide range of products such as pesticides, dyes, and chemical intermediates.
Spices and Agricultural Products
India is the largest producer and exporter of spices globally. The US imports a variety of spices from India, including turmeric, chili powder, and cumin. In addition to spices, India exports other agricultural products like rice, tea, and coffee. In 2021-2022, the United States was the largest importer of Indian agricultural products, purchasing $5.7 billion worth, which accounted for 11.5% of India’s total agricultural exports.
Leather Goods
India’s leather industry is well-developed, and the country exports a significant amount of leather goods to the USA. This includes footwear, handbags, and other leather accessories. From April to January 2023-24, India’s leather product exports to the USA were valued at $753.55 million.
Handicrafts and Furniture
The US market also has a demand for Indian handicrafts and furniture. These products are valued for their unique designs and traditional craftsmanship. In 2022-2023, the export of handicrafts and furniture from India to the USA was valued at around $3 billion. This includes wooden furniture, carpets, and handmade decorative items. Handicrafts exporter data indicates that carpet exports to the United States were valued at over $1.2 billion in 2021-22.
Marine Products
India is one of the top suppliers of marine products to the USA. This includes shrimp, fish, and other seafood. In 2021-22, the USA imported $3.37 billion worth of Indian seafood, accounting for 37.56% of the total dollar value. The USA remained the largest importer of Indian seafood in terms of both value and volume. Exports to the US increased by 27.63% in volume, 36.76% in rupee value, and 37.56% in dollar revenue. The primary product shipped to the USA was frozen shrimp.
Iron and Steel Products
The export of iron and steel products from India to the USA has seen significant growth in recent years. This includes both raw materials and finished products like pipes and tubes. The total value of iron and steel exports from India to the USA was around $504.04 million in 2023.
Footwear
Indian footwear is known for its durability and affordability. This includes leather shoes, sports shoes, and sandals. The export value of footwear from India to the USA was around $700 million in 2023.
Electrical Machinery and Equipment
Indian electrical goods are known for their reliability and efficiency. India exports a variety of electrical machinery and equipment to the USA, including generators, transformers, and electrical components. The export value of electrical machinery and equipment from India to the USA was around $9.89 billion in 2023.
Plastic Products
Indian plastic products are popular in the US due to their quality and cost-effectiveness. The US imports a range of plastic products from India, including packaging materials, household items, and industrial components. The total value of exports to the US, the largest consumer of the Indian plastic industry, was $2.43 billion in 2021-22, marking a 63.6% year-over-year increase.
Bedding
In addition to wooden furniture, India exports a variety of bedding products to the USA. This includes mattresses, cushions, and other home furnishing items. In 2023, India exported $1.18 billion worth of bed linen, table linen, toilet linen, and kitchen linen to the United States, accounting for 66% of India’s total exports of these items.
Medical Devices and Equipment
India’s medical devices and equipment sector has been growing rapidly, and the USA is a significant market for these products. This includes diagnostic equipment, surgical instruments, and medical implants. The export value of medical devices and equipment from India to the USA was about $4.80 billion in 2022.