US Trade in India - The Modi Factor
THE USITC report says,
In May 2014, India's Bharatiya Janata Party won a majority in India's lower house, the Lok Sabha, and Narendra Modi became the prime minister of India. He previously served for 15years as the chief minister of India's Gujarat state. During that period, Gujarat experienced significant economic development that is often attributed to Modi's pro-market, pro-investment policies. U.S. industry representatives interviewed in India generally expressed optimism that this new government will adopt a position of greater openness, addressing some of those policies that significantly burden foreign business and investment. The policies of the Modi government through the end of September 2014 are described in this report, and some new policies had been implemented by this date. Most notably, these include the relaxation of limits on FDI in the defence, insurance, and rail transportation sectors in July and August 2014.
US Trade in India: U.S. engagement in India has grown substantially in the past decade. This growth, however, was from a small base, so India still accounts for a relatively minor share of total U.S. exports and foreign affiliate sales. In 2013, India accounted for about 2 percent of total U.S. exports of goods and services, less than 1 percent of sales by U.S. overseas affiliates, and less than 1 percent of the stock of U.S. overseas investment. On the other hand, in 2000 India was the 31st-largest market for U.S. exports of goods; by 2013, India had become the 18th-largest market. The value of U.S. exports of goods and services to India in 2013 was 5.5 times larger than in 2000, U.S. FDI in India was 10.2 times larger, and sales by affiliates of U.S. companies in India were 13.5 times larger.
The United States is an important source of goods, services, and capital in the Indian market. It is India's fifth-largest source of FDI, following Mauritius, Singapore, the United Kingdom, and Japan. It is the fifth-largest exporter of goods to the Indian market, following China, the United Arab Emirates, Saudi Arabia, and Switzerland. Overall, India accounted for an estimated $35.7 billion of U.S. exports of goods and services in 2013, $84.1 billion of U.S. affiliate sales in 2012, and $24.3 billion of U.S. outbound FDI in 2013.