Key Economic Events
- In 2007, the U.S. merchandise trade with India surpassed $40 billion for the first and grew at a rate exceeding the average rate for the past five years. The U.S. merchandise trade deficit with India declined in the same year, countering the growing trade deficit that accrued over the previous five years.
- U.S. exports to India benefitted from strong economic growth in India and the devaluation of the U.S. dollar against the Indian rupee. Transportation equipment, primarily aircraft, accounted for two-thirds of the total increase in U.S. exports to India due to rising Indian demand for air travel.
- Although U.S. imports from India increased in 2007, import growth was the smallest annual growth in the past five years. Chemicals and related products, minerals and metals, and energy-related products accounted for most the import increase due to higher U.S. demand for generic drugs, contract wins by Indian line pipe producers to supply energy pipelines in the southern United States, and new Indian production capacity for petroleum and jet fuels.
Trade Shifts in 2007 from 2006
- U.S. trade deficit:Decreased by $5.1 billion (40 percent) to $7.5 billion
- U.S. exports: Increased by $7.3 billion (81 percent) to $16.3 billion
- U.S. imports: Increased by $2.2 billion (10 percent) to $23.9 billion
Other Government Resources