Two-way trade between India and the US is projected to touch USD 238 billion by 2025 from USD 143 billion currently if it grows 7.5 per cent each year, the US-India Strategic Partnership Forum said Friday.
This growth will occur if trade grows by average 7.5 per cent a year, as has been the trend for the past seven years, the USISPF said in a report.
The body also estimated that by 2025, bilateral trade could range between USD 283 billion and USD 327 billion, at an annual average growth rate of 10 to 12.5 per cent, as witnessed in 2017 and 2018.
The assessment underscores pathways for growth and economic opportunity in our bilateral ties by highlighting current trends.
"Sectors such as defence trade, commercial aircrafts, oil and LNG, coal, machinery and electronics are areas of potential growth in US investments and commerce into India. Similarly, Indian industry has an opportunity to promote the automotive, pharmaceuticals, seafood, IT (information technology) and travel services to the US market," the USISPF said.
The assessment was launched at its second annual leadership summit in the US, which was attended by Nancy Pelosi, Speaker of the United States House of Representatives; Rick Perry, United States Secretary of Energy; and Wilbur Ross, US Commerce Secretary; among others.
"While India's ambition to become a USD 5-trillion economy by 2025 is certainly welcome for businesses, government, and individual citizens in the US and India, it is essential that we level the playing field and stay away from protectionism.
"I am confident that we can achieve USD 327 billion in bilateral trade by 2025 if we grow at 13 per cent every year. I challenge the government and industry to work together to advance this objective," USISPF Chair John Chambers said.
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