India’s Annual Trade Surplus with US May Exceed $90 Billion After Deal: SBI Report

A research report by the State Bank of India indicates a significant expansion in India’s trade balance with the US following the new trade agreement. 

Surplus May Rise Beyond $90 Billion 

According to a report by the State Bank of India, India’s annual trade surplus with the US could rise from $40.9 billion last year to over $90 billion after the implementation of the new deal. 

The report estimates an additional surplus of at least $45 billion per year, equivalent to 1.1% of India’s GDP. It also projects potential savings of $3 billion in foreign exchange reserves. 

SBI Chief Economic Adviser Soumya Kanti Ghosh said that according to the preliminary estimates, Indian exporters may increase exports of the top 15 items to the US by $97 billion in a year. He added that when other items are included, the potential increase in exports could cross $100 billion annually. 

EU Agreement Opens $260 Billion Textile Market 

The report also referred to the recent trade agreement with the European Union, which has opened a $260 billion textile market to India. Textile imports under this arrangement will attract zero duty. 

Read More: India Signs ₹2,312 Crore Aircraft Contract with HAL to Support Coast Guard Operations! 

Conclusion 

With exports to the US potentially exceeding $100 billion and a projected trade surplus of over $90 billion annually, the SBI report highlights a significant shift in India’s external trade outlook. 

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