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E-commerce Trade Between India and US

US Import Data

As we all know, the most exciting and rapidly growing medium for business transactions in India is e-commerce. The Indian e-commerce market is anticipated to increase from US$48.5 billion in 2018 to US$200 billion in 2026, as per India trade data. The increased use of smartphones and the internet has been the catalyst for this growth. Top American businesses may now more easily access Indian consumers thanks to e-commerce, which has also emerged as one of the fastest-growing trade channels for international trade in products and services. This blog briefly discusses e-commerce trade between India and the US.

What is the Trade between India and the USA?

The U.S. became India's biggest trading partner in 2022–23 because of the increasing economic partnership between the two countries.

Trade between India and the United States has grown rapidly in recent years, and the US is now India's largest trading partner. In 2022–23, bilateral trade between the two countries reached $128.55 billion, up from $119.5 billion in 2021–22, based on US Import Data.

As per India Export Data, India's exports to the US include pharmaceuticals, gems and jewellery, engineering goods, textiles, and agricultural products. US exports to India include machinery and equipment, chemicals, electronics, and vehicles.

Some of the key sectors driving trade between India and the US include:

  • Information technology and services: India is a major exporter of IT and IT-enabled services to the US, and the US is a major source of investment in India's IT sector.
  • Pharmaceuticals: India is a leading exporter of generic pharmaceuticals to the US, and the US is a major source of investment in India's pharmaceutical sector.
  • Manufacturing: India is increasingly becoming a manufacturing hub for the US, and the US is a major source of investment in India's manufacturing sector.
  • Defence: India and the US have a growing defence partnership, and the two countries are increasingly collaborating on defence procurement and technology development.

The growth of trade between India and the US has been mutually beneficial for both countries. It has helped to create jobs, boost economic growth, and promote innovation. The two countries are also working to deepen their trade and economic ties through initiatives such as the US-India Strategic Partnership Forum and the US-India Comprehensive Economic Partnership Agreement (CEPA).

Top Export Products from USA to India

According to Indian export and import data, the top export products from the USA to India in 2022 were:

  1. Pharmaceutical products: The USA is a world leader in pharmaceutical research and development, and India is a major market for US-made drugs. US pharmaceutical exports to India are valued at billions of dollars each year.
  2. Cotton: The USA is a major producer of cotton, and India is a major importer. US cotton exports to India are used in a variety of products, including textiles, apparel, and home goods.
  3. Vehicles other than railways: The USA is a major exporter of automobiles and other motor vehicles. US vehicle exports to India are growing in popularity as the Indian middle class expands.
  4. Inorganic chemicals and precious metal compounds: The USA is a major producer of inorganic chemicals used in various industrial and consumer products. US inorganic chemical exports to India are used in a variety of industries, including pharmaceuticals, plastics, and metals.
  5. Aircraft, spacecraft, and parts: The USA is a major exporter of aircraft and spacecraft. US aircraft exports to India are used by both commercial and military airlines.

E-commerce Trade between India and US: A growing opportunity

E-commerce trade between India and the US is growing rapidly, driven by a number of factors, including a growing middle class in India, rising incomes, and the increasing availability of reliable internet access.

In 2021, the value of e-commerce trade between India and the US will reach $10.5 billion, up from $5.5 billion in 2019, as per US Import Data. This growth is expected to continue in the coming years, as the Indian e-commerce market is projected to reach $350 billion by 2026.

Also, the Indian government wanted to surpass the quantity of exports through its portal. The growing trade between the countries will largely depend on the factors to consider,

India's e-commerce industry is expected to surpass the US by 2034, according to a report by Shiprocket X. This is due to a number of factors, including:

India has a rapidly growing middle class, which is driving demand for e-commerce goods and services. According to a report by the Pew Research Center, the Indian middle class is expected to reach 563 million people by 2030.

Overall, the Indian e-commerce industry is well-positioned to surpass the US by 2034. The factors listed above, along with the other trends mentioned, will likely contribute to the continued growth of the Indian e-commerce market in the coming year.

Major E-commerce products traded between India and US

According to US Imports Data, the major products traded between India and the US through e-commerce includes:

  • Electronics: Smartphones, laptops, tablets, and other electronic devices are popular items among Indian consumers.
  • Fashion: Clothing, footwear, and accessories are also in high demand.
  • Health and beauty products: Indian consumers are increasingly interested in purchasing high-quality health and beauty products from the US.
  • Groceries: A growing number of Indian consumers are using e-commerce to purchase groceries from US retailers.
  • Home and garden products: Furniture, appliances, and other home and garden products are also popular items among Indian consumers.

Challenges and opportunities

While e-commerce trade between India and the US is growing rapidly, businesses need to be aware of several challenges. One challenge is the high cost of shipping goods from the US to India. Another challenge is the complex regulatory environment in India.

However, there are also a number of opportunities for businesses that are able to overcome these challenges. The Indian e-commerce market is growing rapidly, and there is a large and growing middle class with disposable income. Additionally, the Indian government is supportive of e-commerce development.

The Indian government is taking a number of steps to support the development of e-commerce in India. For example, the government has simplified the process of importing goods through e-commerce platforms. Additionally, the government has launched a number of initiatives to promote e-commerce exports from India.

How to find the US Importer Database?

To find the updated US Importer Database, Seair Exim Solutions is the best platform to analyze market trends and update information regarding US imports data. We provide authentic and relevant India import Data, India export Data, and HS codes. If you need any type of assistance regarding India import export data, our data experts always provide valuable and authentic trade data to explore your business globally.

In conclusion, E-commerce trade between India and the US is a growing opportunity for businesses on both sides. Businesses that are able to overcome the challenges and take advantage of the opportunities in this market can be well-positioned for success.

Looking for Global Trade Data? If so, then visit Seair Exim Solutions; our Hs code finder helps you find the real-time import and export data for any particular product. If you require any type of assistance regarding India export import data or US Import Data, our data experts always provide valuable and authentic trade data to explore your business globally. Connect now to book a free live demo today!

  • Seair Exim
  • 15-Sep-2023

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