US-India trade entering high‑growth phase: Report
New Delhi, May 21
US-India trade is entering a high‑growth phase and could reach $500 billion by 2030 driven by stronger supply chains, technology collaboration and deeper integration across manufacturing and services, a report said on Thursday.
The report from KPMG in India and AMCHAM said bilateral trade has expanded steadily in recent years, with India's cumulative exports to the US reaching $87.3 billion in FY26, accounting for 20 per cent of total merchandise exports.
Electronics, textiles, pharmaceuticals, machinery and gems and jewellery continued to anchor bilateral trade.
"As global value chains realign, India's scale, cost advantage and talent base position it as a trusted partner for U.S. businesses. The next phase will be defined by execution, translating policy momentum into resilient, long term economic outcomes," said Neeraj Bansal, Partner and Head- India Global, KPMG in India.
With strong momentum across key sectors such as electronics, pharmaceuticals and high-value services, the focus is now on translating opportunity into execution through tighter supply linkages, regulatory coherence and predictable market access.
The report outlined that the U.S.-India corridor is emerging as a key engine of global growth, underpinned by rising trade volumes, expanding sector-specific linkages and increasing strategic alignment across manufacturing, technology, energy and talent mobility.
As trade expands across key sectors and new opportunities emerge in manufacturing, energy and technology, the focus must shift towards execution, strengthening supply chains, improving market access and ensuring regulatory predictability, said Manoj Kumar Vijai, Non-Executive Chairman, Office Managing Partner, Mumbai.
India supplies nearly 40 per cent of generic drugs used in the U.S., reinforcing its role in global healthcare supply chains.
The report noted that strengthening logistics, regulatory coherence and standards alignment remain critical to deeper economic integration for both countries.
Semiconductors, defence and clean energy are expected to drive the next wave of growth opportunities, it forecasted, adding that strategic priorities include manufacturing integration, technology assurance, MSME value-chain upgrade and energy security.
— IANS
Reader Comments
The $500 billion target by 2030 sounds ambitious, but we've seen such projections before. What worries me is whether our domestic industries can handle the competition from US imports. Need to ensure it's a two-way street, not just us exporting cheap goods. 🤔
As someone working in pharma, I'm proud that we supply 40% of generic drugs to the US. But regulatory coherence and standards alignment are crucial. We can't afford quality issues—our reputation is at stake. Good to see this mentioned in the report. 💊
Living in the US, I see Indian products everywhere—from generic medicines to tech support. The realignment of global supply chains is a huge opportunity for India. But both governments need to address visa issues and trade tariffs to unlock the full potential. 🇺🇸🤝🇮🇳
The report's focus on semiconductors and defence is spot on—these are the sectors where real deep tech collaboration can happen. But we must also watch out: technology transfer isn't free, and the US will protect its interests. India needs to negotiate hard but smart. 🛡️
KPMG and AMCHAM have a point—India's talent pool and scale are unmatched. But we need to fix logistics bottlenecks and power costs to truly become a manufacturing hub. Otherwise, it's just the same old story of potential not fully realized. Hope this time is different! 🔋⚡
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