REPORT

SUBJECT: BUSINESS ECONOMICS

TOPIC: INDIA TRADE WITH U.S

SUBMITTED TO: SUBMITTED BY:

PROF. TAPAN KUMAR NAYAK ATIN GARG (09051)
ATUL SAFFAR (09052)
 ATUL YADAV (09053)
AVANEE TYAGEE (09054)
BHUMIKA ROHTAGI (09055)

Acknowledgement
With the ocean of gratitude we would especially like to
express our sincere thanks and appreciation to our faculty,
Dr. Tapan Kumar Nayak. His insightful advice,
encouragement, and mentoring have played a major part in
our project. His concern for us meant a great deal to us. We
take this opportunity to express our gratitude to Mr.
Sanjay Kumar Mangla for providing the best guidance at
all time. Special thanks to our college's library faculty for
their cooperation in providing us with the information.

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 DECLARATION

We here by declare that the project work entitled: “India's

trade with United States” is an original work done by us
for the fulfillment of academic project work of Ist semester
under the guidance and supervision of Prof. Tapan
Kumar Nayak from IMS, Ghaziabad and have submitted
to college.

SUBMITT
ED BY-
ATIN KUMAR GARG (09051)
ATUL SAFFAR (09052)
ATUL YADAV (09053)
AVANEE TYAGI (09054)
BHUMIKA ROHATAGI (09055)

3
 To Whom It May Concern

This is to certify that this work entitled “India’s

Trade With United States” has been carried out by Atin
Kumar Garg, Atul Saffar, Atul Yadav, Avanee Tyagi,
Bhumika Rohatagi in partial fulfillment for the project
work of Business Economics of first year. This work is
original and has not been submitted in part or full to any
other university for any other degree or diploma.

(SIGNATURE: -)

Dr. Tapan Kumar Nayak

Faculty of Business Economics

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 Table of Content: -

1. Introduction……………………… 8
2. Literature Review………………... 10
3. India’s Economic Condition……... 12
4. Merchandise Trade….…………… 13
5. Sectoral Shift to Services………... 14
6. India-US Trade……..……………. 16
7. Rapid growth in trade……………. 18
8. Exports to India………………….. 19
9. Imports from India……………….. 23
10. Trade Balance………………… 27
11. Investment……………………. 30
12. Initiatives……………………... 31
13. Trade Fairs……………………. 34
14. Conclusion……………………. 37
15. Refrences……………………... 39

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 Abstract
Trade and commerce forms a crucial component
in the rapidly expanding and multi-faceted relations
between India and United States of America. It is the
significant aspect of the global and strategic partnership
existing between the two countries, United States and India.

We here will discuss what is the trade relation, the

significant features of the India and US trade relations.
We would also like to present the data related to trade
relations between two countries with respect to both
imports and exports. And how both the countries are
working for enhancement in the high-tech trade between
the two countries.

At last we would like to add few suggestions for better

functioning of trade between the two countries.

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 List of Graphical Tables
Tables
• Table 1. Sectoral Shift……………………… 14
• Table 2. Merchandise Exports……………… 20
• Table 3. Merchandise Imports……………… 24
Figures
• Figure 1. GDP of India…………………….. 12
• Figure 2. Increase in Trade………………… 18
• Figure 3. India’s Trade Balance…………… 27
• Figure 4. India’s Export…………………… 21
• Figure 5. India’s Import…………………… 25
Charts
• Chart 1. Advance Release calander……….. 13
• Chart 2. % Change in Trade………………. 17
• Chart 3. Export pie-chart…………………. 20
• Chart 4. Import pie-chart…………………. 24
• Chart 5. Current Trade…………………….. 28

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 Introduction
Economic and trade relations between the United
States and India have experienced a number of ups and
downs since India’s independence in 1947. During much of
the 1950s and early 1960s, the United States was a leading
trading partner for India, providing the nation with about a
third of its imports.
For the next 40 years, political and economic relations
between India and the United States were rather cool.
Since 2004, Washington and New Delhi have been
pursuing a “strategic partnership” based on numerous
shared values and improved economic and trade relations.
India is in the midst of a rapid economic expansion, and
many U.S.
Companies view India as a lucrative market and a
candidate for foreign investment. Despite the growth in
bilateral trade and the improvement in trade relations, there
are still a number of economic and trade issues between
India and the United States. Both nations seek greater
market access to the other’s domestic markets, as well as
the lowering of perceived trade barriers. In addition, both
India and the United States would like to see changes in the
other nation’s legal and regulatory policies to help protect
and promote exports and foreign direct investment. For
Congress, resolution of some of the key economic and trade
issues may involve alterations in current federal law.

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 This report provides a summary of India’s current
political climate (with a focus on its effects on the nation’s
economic and trade policies), its economic condition and
policies, the recent trends in bilateral trade and foreign
direct investment, and key economic and trade issues
between India and the United States. Where suitable, the
report also compares India to other nations to provide a
different perspective on U.S. relations with both nations.

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 Literature review
We had gone through different articles given in
different newspapers on different dates and different
books from different authors and we also managed to
go through data from some Internet sites. We had
then correlated different things in a sequential
manner to make it clear in our project work.
We had used secondary sources of data for
our study and suggestions given as the conclusion of
the report. Since the topic of this report is an
exhaustive one and ever changing which does not
allow us to get to a final conclusion as a sure and
certain happening. But with the help of our faculty,
‘Dr. Tapan Kumar Nayak’, we are at some logical
conclusion

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 Objective
1. To understand the trade relations.
2. To know the factors that helps India in its economical
growth.
3. To see various Imports and Exports of Trade and
Trade balance between India and US.
4. To know investments and initiatives between the India
and US.

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 Scenario/Data analysis
India’s Economic Condition
Over the last five years, India has been one of Asia’s
fastest growing economies.
Figure 1. (GDP) for the years 2002 to 2007. In nominal
terms, India’s GDP grew from 24.5 trillion rupees in 2002
to 40.3 trillion rupees in 2006 — an increase of 64% in four
years — and is projected to reach 45.6 trillion rupees in
2007. When converted into “real” GDP using a purchasing
power parity conversion, India’s GDP rose from $3.2
trillion in 2002 to $4.4 trillion in 2006, and is projected to
increase to $4.7 trillion in 2007.

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 QuickTimeª and a
decompressor
are needed to see this picture.

Merchandise Trade
Exports and imports of goods between two or more nations.

Current Stats related to Merchandise Trade

Chart 1. Advance Release Calendar

SDDS Data Unit of Period Latest *Data for Percentage Change

Category Description of Latest Data(2) Previous from previous to
Component Data(1) period(3) latest period

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External Sector-Merchandise Trade

Total US $ Million July, 13623 19036 -28.4

Exports 2009
(f.o.b)

Total US $ Million July, 19621 31189 -37.1

Imports 2009
(c.i.f)

Total trade US $ Million July, -5998 -12153 -50.6

balance 2009

(1) Reference Month

(2) Provisional data reported in the Press Note of the Current Month
(3) Latest revised figures of the Previous year reported in the Press Note of the
Current Month

Sectoral Shift to Services

Much of India’s economic growth has been the result of
the expansion of its manufacturing and service sectors.

Table 1 provides a sectoral breakdown of India’s real GDP

for fiscal years 1996, 2001, and 2006. Although the value
of all three sectors increased, growth in the services sector
exceeded that of the manufacturing sector, and the

14
manufacturing sector grew faster than the agricultural
sector. As a result, the portion of GDP contributed by the
agricultural sector fell, the share of the manufacturing
sector declined slightly, and the contribution of the services
sector rise. The dominance of the services sectors in India’s
GDP hides the continued importance of agriculture to the
Indian population. An estimated 71% of India’s population
in 2006 lived in rural areas, with over half of those people
living in villages of less than 5,000 people. While there has
been growth in non-agricultural employment in India, about
two-thirds of India’s male population in 2004 continued to
work primarily in agricultural activities.

QuickTimeª and a
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Another worrying aspect of the recent restructuring of

India’s economy has been a surprising lack of job creation.
In other nations, when the economy exhibited rapid
economic growth, along with a shift from agriculture to
manufacturing to services, there was a corresponding rise
in manufacturing and service employment. However, in
India’s case, the level of job creation has been low.
According to a recent International Monetary Fund country

15
study of India, “employment in the organized sector has
remained roughly unchanged at about 27 million over the
past decade and a half.”

Some analysts attribute this to the nature of the

manufacturing and services that dominate India’s economic
growth, claiming that they are typically higher-skilled,
professional jobs in contrast to the low-skill work generated
in nations that previously experienced rapid economic
growth. Others point to India’s restrictive labor laws as
being a major barrier to job creation.

Trade in Services. The rapid rise in India’s merchandise

trade has been outdone by even faster growth in trade in
services. The value of India’s services exports increased
250% between 2000 and 2005, while the value of its
services imports increased 176%. In 2005, the total value of
India’s services trade was $108.3 billion, or nearly half the
size of its total merchandises trade. India’s services trade
surplus in 2005 was $3.9 billion.

India – US Trade (Bilateral trade)

Trade and commerce form a crucial component of the
rapidly expanding and multi-faceted relations between
India and US. From modest $ 5.6 billions in 1990, the
bilateral trade in merchandise goods has increased to $
43.38 billion in 2008 representing an impressive 675%
growth in a span of 18 years.

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 India’s merchandise exports to the U.S.A. declined by
19.7% from $ 14.88 billion during the period Jan-July 2008
to $ 11.95 billion in the corresponding period of 2009. US
exports of merchandise to India also declined by 7.6 %,
from $ 9.92 billion during the period Jan – Jul 2008 to $
9.17 billion in the corresponding period of 2009.

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Chart 2. Percentage Change

2006 2007 2008 2009

(Jan-July)

India’s exports to 16.1 10.3 6.8 - 19.7

US

India’s imports from 22.2 54.7 18.1 - 7.6

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US

U.S.-India Trade Facts (Source: WTO)

U.S. Goods and services trade with India totaled $61
billion in 2007 (latest data available). Exports totaled $28
billion; Imports totaled $35 billion. The U.S. goods and
services trade deficit with India was $7 billion in 2007.
India is currently our 18th largest goods trading partner
with $43.4 billion in total (two ways) goods trade during
2008. Goods exports totaled $17.7 billion; Goods imports
totaled $25.7 billion. The U.S. goods trade deficit with
India was $8.0 billion in 2008.
Trade in services with India (exports and imports) totaled
$19.0 billion in 2007 (latest data available). Services
exports were $9.4 billion; Services imports were $9.6
billion. The U.S. services trade deficit with India was $251
million in 2007.

Rapid Growth in Trade

The sectoral shift of India’s domestic economy is
partially driven by the rapid growth in the nation’s trade in
goods and services.
Figure 2 shows the increase in both merchandise and
service trade from 1990 to 2005. Between 1990 and 1999,
India’s total merchandise trade doubled in value and its

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trade in services trebled in value. Since 1999, India’s
international trade growth has accelerated. Between 1999
and 2005, India’s total merchandise trade and imports of
services nearly tripled in value, and its exports of services
quadrupled in value.

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Exports to India
India was the United States' 17th largest goods export
market in 2008.
U.S. goods exports to India in 2008 were $17.7
billion, up 0.5% ($94 million) from 2007, and up 671%
from 1994 (the year prior to Uruguay Round). U.S. exports

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to India account for 1.4% of overall U.S. exports in 2008,
up from 0.5% in 1994.
The top exports categories (2-digit HS) in 2008 were:
Fertilizers ($2.8 billion), Precious Stones (diamonds) ($2.5
billion), Machinery ($2.3 billion), Aircraft ($1.8 billion),
and Electrical Machinery ($1.3 billion).
U.S. exports of agricultural products to India totaled
$489 million in 2008. Leading categories include: tree nuts
($187 million), cotton ($103 million), and pulses ($63
million).
U.S. exports of private commercial services (i.e.,
excluding military and government) to India were $9.4
billion in 2007 (latest data available), 37.1% ($2.5 billion)
greater than 2006, and 664% ($8.1 billion) greater than
1994 levels. The other private services (education), and
travel categories accounted for most of the U.S. exports in
2007.

Export %age in different sectors shown by pie chart

Chart 3.

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Figure 4 shows the sharp increase in India’s services

exports from 1990 to 2005. Although both transportation
and travel services experienced strong growth over this

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time period, much of the rapid expansion in services
exports occurred in other service sectors. Over the 15 years
in question, India’s services exports increased from $4.6
billion in 1990 to $56.1 billion in 2005 — more than a 12-
fold increase in size.

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decom pressor
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Exports to India (current Figures)

Exports during July, 2009 were valued at US $ 19621
million (Rs. 95118crore) representing a decrease of 37.1 per

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cent in dollar terms (minus 28.8 per cent in Rupee
terms) over the level of imports valued at US $ 31189
million (Rs. 133609 crore) in July, 2008. Cumulative value
of imports for the period April- July 2009 was US$ 78564
million (Rs. 382422 crore) as against US$ 116382 million
(Rs. 488668 crore) registering a negative growth of 32.5 per
cent in Dollar terms and 21.7 per cent in Rupee terms over
the same period last year.

Imports from India

India was the United States' 18th largest supplier of

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goods imports in 2008.
U.S. Goods imports from India totaled $25.7 billion in
2008, up 6.8% ($1.6 billion) from 2007, up 385% over the
last 14 years. U.S. Imports from India account for 1.2% of
overall U.S. imports in 2008, up from 0.8% in 1994.
The five largest import categories in 2008 were:
Precious Stones (diamonds) ($5.6 billion), Woven Apparel
($1.8 billion), Iron and Steel ($1.7 billion), Organic
Chemicals ($1.5 billion), and Machinery ($1.4 billion).
U.S. imports of agricultural products from India
totaled $1.6 billion in 2008, the 16th largest supplier of Ag
imports. Leading categories include: tree nuts ($243
million), spices ($179 million), and essential oils ($146
million).
U.S. imports of private commercial services (i.e.,
excluding military and government) were $9.6 billion in
2007 (latest data available), up 25.6% ($2.0 billion) from
2006, and up 1,162% ($8.8 billion) from 1994. The other
private services (business, professional, and technical
services) and the travel categories accounted for most of
U.S. services imports from India.

Import %age shown by Chart 4.

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Figure 5 presents the growth in India’s services imports

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between 1990 and 2005. The sectoral composition of
growth for services imports is similar to that of exports —
transportation services and travel services both increased,
but the greatest growth was in the import of other
commercial services. Between 1990 and 2005, the value of
India’s services imports grew almost nine-fold, from $5.9
billion in 1990 to $52.2 billion in 2005.

Q u ic k T im e ª a n d a
d e c o m p re s s o r
a re n e e d e d to s e e th is p ic tu re .

26
 Imports from India including re-
exports (Current figures)
Imports during July 2009 were valued at US $
13623 million (Rs 66041 crore), which was 28.4 per cent
lower in dollar terms (minus 19.0 per cent in Rupee terms)
than the level of US$ 19036 million (Rs. 81548 crore)
during July, 2008. Cumulative value of exports for the period
April- July, 2009 was US$ 49651 million (Rs. 241735 crore)
as against US $ 75289 million (Rs. 315978 crore) registering
a negative growth of 34.1 per cent in Dollar terms and
23.5 per cent in Rupee terms over the same period last year.

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 Trade Balance
The U.S. goods trade deficit with India was $8.0
billion in 2008 a 23.7% increase ($1.5 billion) over 2007.
The United States has a services trade deficit of $251
million with India in 2007 (latest data available).
Balance of Trade. The overall growth of international
trade has also created a potential economic problem — a
growing trade and current account deficit (see Figure 3).
From fiscal year (FY) 1997 to 2004, India’s merchandise
trade balance — exports minus imports — generally ran a
deficit of less than $20 billion. However, since FY2004,
India’s merchandise trade deficit has grown from $13.7
billion to a projected $63.7 billion in FY2007. Along with
this rise in India’s balance of trade deficit, its current
account balance has gone from a surplus of $14.1 billion in
FY2004 to an estimated deficit of $14.1 billion in FY2007.

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 TRADE BALANCE (Current
Figures)
The trade deficit for April- July 2009 was estimated
at US $ 28913 million, which was lower than the deficit of
US $ 41093 million during April-July, 2008.
(US $ Million)

Chart 5.

DEPARTMENT OF COMMERCEECONOMIC DIVISION

EXPORTS & IMPORTS : (PROVISIONAL)

JULY APRIL-JULY

EXPORTS (including re-exports)

2008-2009 19036 75289

2009-2010 13623 49651

%Growth 2009-2010/ 2008-2009 -28.4 -34.1

IMPORTS

2008-2009 31189 116382

2009-2010 19621 78564

%Growth 2009-2010/ 2008-2009 -37.1 -32.5

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TRADE BALANCE

2008-2009 -12153 -41093

2009-2010 -5998 -28913

*Figures for 2008-09 are the latest revised whereas figures for 2009-10 are provisional.

DEPARTMENT OF COMMERCEECONOMIC DIVISION

EXPORTS & IMPORTS : (PROVISIONAL)

JULY APRIL-JULY

EXPORTS (including re-exports)

2008-2009 81548 315978

2009-2010 66041 241735

%Growth 2009-2010/2008-2009 -19.0 -23.5

IMPORTS

2008-2009 133609 488668

2009-2010 95118 382422

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%Growth 2009-2010/2008-2009 -28.8 -21.7

TRADE BALANCE

2008-2009 -52061 -172690

2009-2010 -29077 -140687

*Figures for 2008-09 are the latest revised whereas figures for 2009-10 are provisional.

Bilateral Investment with US

U.S. foreign direct investment (FDI) in India was
$13.6 billion in 2007 (latest data available), a 47.8%
increase from 2006.
U.S. direct investment in India is primarily
concentrated in the information, manufacturing, and
banking sectors.
India FDI in the United States (stock) was $3.0 billion
in 2007 (latest data available), up 106% from 2006.
India direct investment in the U.S. is primarily

31
concentrated in the professional, scientific, and technical
services sector.
Sales of services in India by majority U.S.-owned
affiliates were $4.2 billion in 2006 (latest data available),
while sales of services in the United States by majority
India-owned firms were $3.1 billion.
Most important is the flow of investment between the
United States and India. While the U.S. is one of India's top
investors, India also is a noteworthy source of investment
into the United States. In 2007, U.S. foreign direct
investment (FDI) in India was $13.6 billion (a 48%
increase over 2006) and Indian FDI in the U.S. totaled $3
billion (a 106% increase from 2006).

Initiatives
Since Indian Prime Minister Singh's visit to the United
States in July 2005, during which a number of trade and
economic initiatives were announced, United States has
engaged with India on trade and investment matters
through a number of venues.
U.S. -India Trade Policy Forum (TPF)
An interagency collaboration, the USTR-led TPF is

32
the principal trade dialogue between the United States and
India. It has five Focus Groups namely Agriculture,
Investment, Innovation & Creativity (intellectual property
rights), Services, and Tariff & Non-Tariff Barriers. U.S.A
and Indian Focus Group heads meet periodically to work
towards resolution of issues that could better trade and
investment flows. Five ministerial-level meetings were held
between 2005 and 2008, and success was achieved bringing
stability in U.S. apple and almond exports to India and
Indian mango exports to the United States; and increase in
the capital on FDI in the Indian telecommunications sector.
The India-US Trade Policy Forum set up in 2005. It
meets regularly at the Ministerial and Senior Official level.
At the third Ministerial meeting of the Trade Policy Forum
in June, 2006 in Washington the two sides agreed to create
a senior-level Private Sector Advisory Group (PSAG) as an
adjunct to the Trade Policy Forum that will provide
strategic direction, input and support to the forum.
The fifth Ministerial level meeting of the India-USA
Trade Policy Forum took place on 19 February 2008 at
Chicago, USA at the level of Commerce and Industry
Minister of India and United States Trade Representative.
A range of issues were discussed including the Social
Security Agreement and Bilateral Investment Treaty
between the two countries and providing market access for
items of interest to both sides.
Private Sector Advisory Group (PSAG)
Composed of leading trade experts in the United
States and India, the PSAG was created in 2007 to provide

33
strategic recommendations to the Trade Policy Forum. The
groups outlined issues including financial sector reform,
energy co-operation, higher education, and globalization &
inclusiveness, all with a mind to enhance the bilateral trade
relationship.
U.S.-India Economic Dialogue and CEO Forum
The Economic Dialogue led by white house served as
the government-to-government forum on bilateral
economic issues and was the umbrella mechanism for the
Trade Policy Forum and several other bilateral dialogues
led by other top national agencies.
The CEO Forum comprised CEOs from the U.S. and
India - representing a cross-section of sectors - who
exchanged business community views on a number of key
economic priorities and presented recommendations to the
U.S. and Indian governments designed to improve the
commercial climate between the two countries.
The recommendations covered the length and breadth
of the U.S. -India economic relationship and aimed to
enhance economic growth, job creation, and to promote
bilateral trade and investment. The U.S. Trade
Representative, the Commerce and Treasury Secretaries
and the National Economic Council Chairman participated
in both discussions as did India's Deputy Chairman of the
Planning Commission and Ministers of Finance and
Commerce.
High Technology Cooperation Group (HTCG) Meeting
The High Technology Cooperation Group (HTCG),

34
created in 2002, seeks to address two broad agendas: i) to
promote strategic trade i.e. access to dual use items through
easing of controls on exports of such goods to India, this
has to be accomplished while meeting the US concerns on
valid end use, diversion and proliferation, and ii) to
promote and facilitate bilateral high technology commerce
in its broadest sense, inter alia, through steps to be taken by
the two Governments to create an appropriate environment
for successful high technology commerce in partnership
with private sector. Since the commencement of the HTCG
dialogue in 2003, six plenary meetings have taken,
alternatively in the USA and India. The sixth High
Technology Cooperation Group meeting took place in New
Delhi in Feb 2008. The HTCG format involves active
participation of the private sector of both sides and works
through four working groups; one each on Nanotechnology,
Defense and Strategic Trade, Information technology and
Biotechnology and Life science.

Trade Fairs
Here is a list major trade fairs to be held in India during
2009 to 2011. The venue of most of these fairs is Pragati
Maidan in New Delhi.
2009
• Smartcards Expo 2009 – September 10-12, 2009
• India Electricity 2009 – September 10 – 12, 2009
• Expocomm India 2009 – September 17 – 19, 2009
• International Arogya Fair, New Delhi – Sept. 18 – 21, 2009
• Jewellery Wonder 2009 – September 19 – 21, 2009

35
• Inter-Airport India 2009 – September 19-21, 2009
• Pro-Pack India 2009 – September 28-30, 2009
• Delhi International Leather Fair, New Delhi – October 2009
• Ind. Houseware Gift Show 2010 – October 2009
• Mobile Asia 2009 – October 2-5, 2009
• Fire Engineering India 2009 – October 5 – 7, 2009
• Sports Goods & Physical Fitness Equipment Exhibition, New
Delhi – Oct. 5 – 9, 2009
• Wills Lifestyle India Fashion Week 2009 – October 20-24,
2009
• Expo-Rail 2009 – October 21 – 23, 2009
• IFSEC 2009 – October 29 – 31, 2009
• VIV India 2009 – November 3-5, 2009
• India International Trade Fair, New Delhi – Nov. 14 – 27,
2009
• India Tech (Technology Trade Pavilion), New Delhi – Nov.
14 – 27, 2009
• Enviro Tech, New Delhi – Dec. 14- 17, 2009
• IFE 2009 – December 2-4, 2009
• PHD - Punjab International Trade Expo 2009 Amritsar,
December 2-6, 2009
• India Telecom 2009 – December 3 – 6, 2009
• Paperex 2009 – December 4 – 7, 2009
• FESPA World Expo India 2009 – December 7 – 9, 2009
• Water Asia 2009 – December 9 – 11, 2009
• Acetech 2009 – December 17 – 20, 2009
• Expodent Int’l. India 2009 – December 18 – 20, 2009
• Energy Tech, New Delhi – Dec. 14 – 27, 2009

2010
• BevIndia 2010- January 23-24, 2010

36
• Signages, New Delhi – January 2010
• Auto Expo 2010 – January 6 – 13, 2010
• India International Garment Fair – January 20-22, 2010
• India International Security Expo, New Delhi – Jan. 27 – 30,
2010
• 19th New Delhi World Book Fair 2010 – Jan 27 – Feb 7,
2010
• Arogya, Thrissur (Kerala) – Jan. 28 – Feb. 1, 2010
• India International Leather Fair, Chennai – Jan. 31 – Feb. 3,
2010
• AMTEX 2010 – Jan/Feb 2010
• Globalcom India 2010 – February 3-5, 2010
• Defexpo India 2010 – February 15 – 19, 2010
• Componex Nepcon India 2010 – February 17 – 19, 2010
• Tex-Styles India, New Delhi – Feb. 24 – 27, 2010
• International Leather Goods Fair, Kolkata - February 26 – 28,
2010
• Ind. Houseware Gift Show 2010 – March 1 – 3, 2010
• Intex 2010 – March 1 – 3, 2010
• World of Franchising in India 2010 – March 17 – 19, 2010
• Convergence India 2010 – March 2010
• Nakshatra, New Delhi – March 5 – 9, 2010
• Ahar – The Int’l. Food Fair (Twin events: ‘Food India’ &
‘Hospitality India’), New Delhi – March 10 - 14, 2010
• IT India Fair, New Delhi – March 26 – 29, 2010
• Delhi Spring Lifestyle Show (Furniture & Interior Show),
New Delhi – March 26 – 29, 2010
• Ahar – The Int’l. Food Fair (Twin events: ‘Food India’ &
‘Hospitality India’), Shilling – April 2010
• India Int’l. Maritime Logistics Expo, Mumbai – April 10 –
12, 2010
• Ahar – The Int’l. Food Fair (Twin events: ‘Food India’ &
‘Hospitality India’), Chennai – August 27 – 29, 2010

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 • International Arogya Fair, New Delhi – Sept. 18 – 21, 2010
• Delhi International Leather Fair, New Delhi – October 2010
• India International Trade Fair, New Delhi – Nov. 14 – 27,
2010
• India Tech (Technology Trade Pavilion), New Delhi – Nov.
14 – 27, 2010
• Delhi Book Fair, New Delhi – Dec. 11 – 19, 2010
• Stationery Fair, New Delhi – Dec. 11 – 19, 2010
• Energy Tech, New Delhi – Dec. 14 – 27, 2010
• Enviro Tech, New Delhi – Dec. 14- 17, 2010

Conclusion
After decades of strained political relations, the U.S.
and Indian governments are currently pursuing a “strategic
partnership” based on numerous overlapping interests,
shared values, and improved economic and trade relations.
India is in the midst of a rapid economic expansion, and

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many U.S. companies view India as a lucrative market for
foreign investment. For its part, the current Indian
government sees itself continuing the economic reforms
started in 1991, aimed at transforming a quasi-socialist
economy into a more open, market-oriented economy.
However, the U.S. government is concerned that India’s
economic reforms are progressing too slowly and unevenly.
Bilateral merchandise trade has grown from $6 billion in
1990 to $33 billion in 2006. Although India was only the
21st largest export market for the United States in 2006, the
United States has become India’s leading trading partner,
mostly due to the growth in India’s exports to the United
States.
However, recent increases in trade with China have
made it a close second to the United States. In 2006, the
U.S. bilateral trade deficit with India totaled $13 billion. In
2006, India’s gross domestic product (GDP) grew by 9.2%,
a growth rate second only to China among Asian nations.
India’s economic growth has also brought about the
emergence of a sizeable “middle class” and the largest
number of billionaires in Asia, but the country’s mostly
rural population remains comparatively poor and largely
isolated from the benefits of growth.
In addition, there is growing concern that the economy
is “overheated,” as evidenced by rising rates of inflation.
Moreover, despite several years of strong growth,
investment in infrastructure is lagging, creating a potential
attempts at additional economic reforms aimed at resolving
these and other economic problems are constrained by
India’s political dynamics. Despite the significant

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liberalization of India’s trade and foreign investment
policies, there remain a number of bilateral and multilateral
trade issues between the United States and India.
The United States seeks greater market access to
India’s agricultural market and key service sectors for its
exports and for foreign direct investment. The United
States is also concerned about “outsourcing,” and would
also like to see improvements in India’s intellectual
property rights protection. India, for its part, calls for the
lowering of perceived U.S. barriers to agricultural and
service imports, as well as an expansion of the H-1B visa
program. Many of the more prominent Indo-U.S. trade
issues may have indirect implications for Congress. The
growth of India’s services exports to the United States has
contributed to congressional consideration of possible
legislation to provide greater assistance to displaced U.S.
workers. Also, India’s growing demand for crude oil has
raised the possibility of boosting bilateral energy
cooperation. Finally, the passage of the Hyde Act in 2006
has led to the negotiations of a bilateral peaceful nuclear
cooperation (“123”) agreement, which cannot go into effect
without congressional approval.

References

• http://www.indianembassy.org

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• www.indiatradefair.com
• http://www.commerce.nic.in

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