The Biden administration has indicated a willingness to be part of India’s economic miracle, where the South Asian nation is on the path to becoming a ten trillion dollar economy in the next ten years and eventually a developed nation by 2047. The United States aims to strengthen bilateral trade between the two countries and is looking for opportunities to pocket more investments in technologies of the future, such as space exploration, artificial intelligence, and quantum computing.
The growth of India’s economy has ensured that the trade of goods and services between the two countries skyrocketed to a record high USD 192 billion in 2022. This marked the US surpassing China as India’s top trading partner once again. President Joe Biden continues to use his position to encourage increased trade between India and the US with a goal to reach USD 500 billion in bilateral trade.
An initiative unveiled in January called the Initiative for Critical Emerging Technologies is trying to spark innovation and collaboration by connecting Indian and US engineers. And over 200,000 Indians studying in the US will benefit with an overall stronger economy in the homeland.
Additionally, India has reached the highest ever foreign direct investment (FDI) amount of USD 81.72 billion in fiscal 2020-21, with the US becoming India’s second-largest FDI provider at USD 13.82 billion. There are multiple existing dialogues between the US and India forged since 2005 as part of the effort to deepen economic ties and cooperation.
For instance, the India-US Commercial Dialogue discusses issues in relation to ease of doing business, travel and tourism; then there’s the India-US CEO Forum and the India-US Economic and Financial Partnership Dialogue. India recently joined the launch of the Indo-Pacific Economic Forum to promote inclusivity and flexibility in the region.
To support India’s growth and becoming a part of their economic miracle, the United States continues to prioritize collaboration and investment between both countries.
