India US Trade Relations

Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[5/5]Total Votes [ 15 ]  
Rate this page:
India US Trade Relations is the significant aspect of the global and strategic partnership existing between the two countries, United States and India. The India US Trade Relations over the years have grown to reach US $ 31.917 billion in 2006.

Features of India US Trade Relations
The premiers of both the nations believe that the cordial India US Trade Relations will have a long lasting and positive influence on the future international system, promoting stability, democracy, prosperity and peace across the world. The significant features of the India US Trade Relations are as follows:

  • The Next Steps in Strategic Partnership provides a more transparent U.S. licensing arrangements for Indian imports of sensitive items and technology. This in turn have lead to an enhancement in the high-tech trade between the two countries.

  • The India US Trade Relations was further boosted with the conclusion of an Open Skies Agreement between the two nations in the year 2005. This agreement is supposed to increase the air connectivity between the two countries, thereby improving the commercial and trade relations.

  • The visits of US Commerce Secretary Gutierrez and USTR Susan Schwab in this year has been a great impetus for the India US Trade Relations highlighting the multilateral issues including those on the Doha Round of Multilateral Trade Negotiations.

  • The US-India Agricultural Alliance agreed upon on 2005, between the two countries concentrates on promoting teaching, research, service and commercial linkages. In the following year under the bilateral Knowledge Initiative on Agriculture there was an agreement to link universities, technical institutions and businesses to support agriculture education, joint research and capacity building projects specially in biotechnology.

  • Outsourcing of knowledge work to India by the US based companies is a significant feature of the India US Trade Relations as producing goods and services in India makes them cheaper in the US.

  • The India US Trade Relations is also characterized by the inter-dependence in terms of financial markets as US institutional investors are increasingly investing in India and on the other hand Indian multinational corporations are going on buying companies in the US and establishing operations in the US.

  • Areas like infrastructure, IT, Telecom sector, energy and other knowledge industries such as pharmaceuticals and biotechnology, are the favorite areas for economic cooperation between India and the US. Some of the major multi national corporations of USA doing a profitable business in India are- General Electric, Whirlpool Ford (India), 3M, Tecumseh Products (India) Limited, Pepsi, Proctor and Gamble (India), Microsoft, Intel, and IBM Corporation.

Export from India to US

The main export items from India to US are like precious gems and jewelry, textiles, organic chemicals and engineering goods, IT and agricultural products. In 2006, it is found that the total amount of Indian exports to the US increased by 16.07%.

US Export to India
The main items of US exports to India. are machinery, precious stones and metals, organic chemicals, optical and medical instruments, aircraft and aviation machinery with the total amount increased by 26.31% in 2006.

Impediments in the India-US Trade relations There are some obstacles that have an adverse effect on the India-US Trade relations as US criticizes India for certain reasons like:
  • High tariff rates on imports
  • High surcharges and taxes on a variety of imports
  • Non-tariff barriers on US exports to India
Higher education in US for Indian Students is made a bit easier and convenient by the American institutions who have successfully reached out to international students via scholarships, exchange programs, the Fulbright Program, other grants and loans, and cost-sharing with the government.

Among the most prized institutions for higher Education in US for Indian Students, the University of Southern California is the leading host institution for all international students. Other favorite destinations for Higher Education in US for Indian Students are University of Texas, Arlington, Purdue, and Arizona State University. The most popular fields of study for Higher Education in US for Indian Students are Business Management, Engineering, Mathematics, and Computer Sciences, Physical and Life Sciences, Health care related programs, Intensive English Language programs, and Agriculture.

The United States Educational Foundation in India or the USEFI, is one of the most important institutions which promotes academic and cultural exchanges between India and USA. It has a significant role in developing partnerships between Indian and American institutions, and facilitates the entry and establishment of accredited US schools in India and vice versa.