Indo-US economic relations: prospects and challenges

Abstract

India and the Unites States of America (USA) have much in common – diversity, democracy, commitment to global causes. India being the 10th largest and USA being the number one economies account for about 27 per cent of the world production and play a major role in shaping the global economy. The last decade witnessed increased economic relations between these two resulting in four-fold increase in trade and investment making India the twelfth largest trading partner of USA. Though trade and investment constitute the core of the Indo-US strategic dialogue, such cooperation in its current form lacks focus and the actual trade has been much below potential given the size and complementarity between the two countries. In this context, the present paper analyzes trade, investment and mutual cooperation between the two countries and identifies a number of issues to improve US-India economic relations.