Key Economic Trends
- Weakness in the global economy contributed to a decrease in U.S.-India bilateral trade, which declined by nearly $8 billion in 2009. The U.S. trade deficit with India decreased by 23 percent as the decline in U.S. imports from India was greater than the decline in U.S. exports.
- Although Indian gross domestic product (GDP) expanded by over 6 percent, the rate was lower when than the rates in previous years. Slower economic growth contributed to declines in U.S. exports in virtually all economic sectors in 2009.
- The U.S. recession contributed to a decrease in U.S. imports from India across a broad range of sectors, including industrial products and luxury goods. U.S. imports of steel fell by nearly $1 billion owing to reduced demand by the automobile and construction sectors. A fall in U.S. consumer discretionary spending led to a large decline in U.S. imports from India of cut and polished diamonds.
Trade Shifts from 2008 to 2009
- U.S. trade deficit: Decreased by $1.9 billion (23 percent) to $6.6 billion
- U.S. exports: Decreased by $2.7 billion (16 percent) to $14.6 billion
- U.S. imports: Decreased by $4.6 billion (18 percent) to $21.2 billion
- India: Effects of Tariffs and Nontariff Measures on U.S. Agricultural Exports,
- Inv. No 332-504, USITC Pub. 4107, November 2009
Other Government Resources