Economic Scenario of USA:
The US has a highly diversified, world-leading industrial sector. It is also a high-technology innovator with the second-largest industrial output in the world. The U.S. dollar is the currency most used in international transactions and is the world's foremost reserve currency. Several countries use it as their official currency, and in many others, it is the de facto currency. Its largest trading partners are China, Canada, Mexico, Japan, Germany, South Korea, United Kingdom, France, India, and Taiwan. The United States remains the largest single recipient of FDI in the world with an advantage of having a business-friendly environment and quality of life considerations to specific technology, supply chain, infrastructure and workforce factors. The nation’s diversity and openness are what truly allow businesses from all countries and industries to find their place in the market – and thrive.
India-USA Commercial relations:
Amid rising trade tensions between the world's two largest economies, the US and China, the time is ripe to bolster the bilateral relationship between India and US facilitating greater economic and institutional collaboration in areas of trade and investment. With pressure on the rupee in the wake of hardening of crude oil prices, bridging the trade deficit is of great significance for India's overall current account deficit. The best way forward for bridging the gap is to raise exports, moving with a definite strategy. While the government has already begun exercise on this strategy, we in the engineering sector would extend our full support, in terms of sharing key inputs and market intelligence from across different territories, mainly the US where the opportunities are galore in the backdrop of robust growth and vacation of space by the high tariff wall for the Chinese goods.
Bilateral trade and product specific trend:
Economic and commercial relations are the mainstay of the bilateral relationship.USA is our top most trading partner in World and India is the ninth largest trading partner for USA globally (Source: Trade Map). India’s total trade with US increased from US$ 61.6 billion in 2013-14 to US$ 74.49 in 2017-18 at a CAGR of 4.8% after a deteriorating trend observed in 2015-16. As per latest statistics, bilateral trade during April-January 2018-19 stood at US$ 72.9 billion as against US$ 61.06 billion during April-Jan 2017-18. Trade is significantly biased in favour of India.US has maintained its top rank as India’s top most export destination for engineering goods also in 2017-18 and also continuing its top rank during the eleven months of current fiscal April-February 2018-19. In fact trade has transformed U.S.–India relations. Currently India’s total engineering exports with US during April-February 2018-19 recorded at US$ 10.76 billion registering a cumulative growth of 16.88% compared to same period last fiscal. At present, it accounts for over 76% of India’s total engineering export to North America (and 14.5% of India's global engineering exports).Engineering products like Electrical machinery and Equipment, Products of Iron and Steel, Auto Components/Parts, Motor Vehicles/Cars, Other Industrial Machinery, Aluminium and products, are the top products traded in USA. Today the two countries are working to fix bad trade deals and negotiating new ones.
Scope for Indian Engineering in USA:
Total bilateral trade (India and the USA ) in goods and service has increased from a mere USD 20 billion in the year 2000 to over USD 126.1 billion in the year 2017. The two countries have set a target of taking the total bilateral trade to USD 500 billion. In order to achieve the above target enhancing exports of Indian engineering goods is the need of the hour. This will permit a qualitative transformation in U.S.-India cooperation in every domain including space, defense, and other sensitive high-technology fields.In engineering sector, Indian products like heavy and light motor vehicle, heavy industrial machinery, fabricated steel structures, pharmaceutical machinery, auto parts, fasteners have registered more than 30% export growth to US during April-Jan 2018-19 vis-à-vis April-Jan 2017-18. Over the years, India has been one of the major importers for USA. Now, due to the present economic scenario it has carved out way for India to enhance its trade possibilities to trade with USA.