Indo-US bilateral trade can touch USD 500 bn by 2025: Report

With India emerging as the most sought after developing market and an important partner for the US, the bilateral trade between the two countries is likely to touch USD 500 billion by 2025, a recent survey said.

According to a survey conducted by PwC and Indo American Chamber of Commerce (IACC), trade between the two countries has the potential to grow up to USD 500 billion through concerned efforts from all stakeholders — government leaders and investors, corporates, businesses and entrepreneurs.

“India continues to emerge as one of the most important markets in the developing world and an important trading partner for the US. This is evident by the four-fold growth in the India-US trade since 2006 to 100 billion USD in 2014,” PwC India Strategy Consulting Leader Shashank Tripathi said.

He said the drivers to achieve this trade growth would be the five key sectors including aerospace and defence (A&D), infrastructure and logistics, energy, manufacturing and services.

“These sectors are of the utmost importance to the Indo-US relationship. In each of these sectors, in addition to the facilitation of trade by the government, the corporate sector can lead the way into the evolving trade relationships,” Tripathi said.

The report further said enormous headroom exists to unshackle the real potential of the trade and strengthen strategic relationship between the two nations through trade.

“This is increasingly important, since in the new world order, economic interests drive strategic partnerships to the mutual benefit of the world’s largest and oldest democracies. The two nations should initiate more trade missions and remove barriers that affect the trade and investment among other initiatives from the government and corporates,” he added.