US remains India’s top trading partner in 2019-20

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News: Ministry of Commerce and Industry has released the data on Bilateral trade between India-US for 2019-20.

Facts:

Key Takeaways:

  • Largest Trading Partner: United States(US) has remained India’s top trading partner for the second consecutive fiscal in 2019-20.
    • The bilateral trade between the US and India stood at $ 88.75 billion in 2019-02 as against $87.96 billion in 2018-19.
  • Trade Surplus: US is one of the few countries with which India has a trade surplus.The trade gap between the countries has increased to $17.42 billion in 2019-20 from $16.86 billion in 2018-19.
  • China: In 2018-19, US first surpassed China to become India’s top trading partner.
    • The bilateral trade between India and China has dipped to $81.87 billion in 2019-20 from $87.08 billion in 2018-19. 
  • Trade deficit: The trade deficit between India and China has also declined to $48.66 billion in 2019-20 from $53.57 billion in 2018-19.

Additional Facts:

  • Trade Surplus: It is an economic measure of a positive balance of trade, where a country’s exports exceed its imports.
  • Trade Deficit: It occurs when a country’s imports exceed its exports during a given time period.It is also referred to as a negative balance of trade(BOT).