India’s Exports To United States Hit $77.5 Billion In FY24—Key Insights From The Latest India-US Trade Report

India's exports to the United States (US) have demonstrated a steady upward trajectory, reaching $77.5 billion in Financial Year (FY)24, with a compound annual growth rate (CAGR) of 10.3 per cent over the past three decades, according to a Bank of Baroda report.

This sustained growth underscores the critical role of the US as a key destination for Indian exports.

In the years leading up to FY 2000, the growth in exports to the US outpaced India's aggregate export growth.

However, the 2008 global financial crisis slowed this momentum until FY10.

Since then, exports to the US have consistently grown at a rate surpassing overall export growth, highlighting the increasing significance of the American market for Indian trade.

The report further notes that India’s export trajectory to the US has mirrored the broader pattern of India’s export growth since the initiation of economic reforms in 1991.

The share of the US in India’s total exports stood at 18 per cent in FY24, up from 16.4 per cent in FY92 but below the peak level of 22.8 per cent recorded in FY00.

After dipping to a low of 10.1 per cent in FY11 following the financial crisis, the US share has rebounded steadily over the years.

Despite the robust performance, the report emphasises the importance of diversifying India’s export markets to mitigate risks associated with over-reliance on a single destination, especially amid evolving global geopolitical dynamics.

The US remains a pivotal market for several Indian industries.

In FY24, the top five export commodities—drugs and pharmaceuticals, pearls and precious stones, petro products, telecom instruments, and ready-made garments—collectively accounted for 40 per cent of India’s total exports to the US.

Industries such as drugs and pharmaceuticals, pearls and precious stones, telecom instruments, and ready-made garments have over 30 per cent of their turnover linked to the US market.

Meanwhile, sectors like carpets, electronic products, yarn products, and marine products, despite their smaller overall export values.

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