This week, Secretary Bryson is in India [1] on his first official trade mission as Commerce Secretary. He is joined by 16 companies [2], and will be advocating for U.S. companies in India’s rapidly expanding infrastructure sector. In honor of this visit, let’s take a look at the importance of trade with India to the United States.
With over 1.2 trillion people [3], India is the second largest country in the world accounting for nearly 18 percent of the population outside the U.S. With 95 percent of the world’s customers living outside our borders, it’s easy to see why trade with India is an important part of our economy and why it will continue to be important long into the future.
India’s growth over the last decade has resulted in increased demand for products and services from countries like the United States. According to the International Monetary Fund’s (IMF) World Economic Outlook [4], from 2001-2011 India’s Gross Domestic Product (GDP) has averaged 7.8 percent growth, more than double the world average of 3.8 percent. It is no surprise then that America’s exports to India have grown from less than $4 billion in 2001 to over $21 billion in 2011, a 475% increase in just a decade.
The IMF projects India’s GDP growth will continue to outpace the world average over the next five years. Going forward, India is expected to spend over $1 trillion on infrastructure development over the next five years, and a growing consuming class could lead to increased demand for a range of consumer goods and services. This growth represents tremendous opportunities for U.S. businesses, which is why Secretary Bryson is in India this week. For more information, follow the Secretary’s trip on the Commerce Blog [5].
~Mark Doms, Chief Economist, U.S. Department of Commerce
March 28, 2012
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