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India–US economic relations have evolved significantly over the past few decades, reflecting the transformation of the global political and economic landscape as well as the convergence of strategic interests between the world’s oldest and largest democracies. The economic engagement between the two countries has become one of the strongest pillars of their bilateral relationship, encompassing trade, investment, technology transfer, energy cooperation, and people-to-people linkages. In a changing world order shaped by globalization, shifting power equations, and the rise of Asia, India–US economic relations assume a critical importance for both nations. The economic ties between India and the United States can be traced back to the post-independence period when India pursued a largely socialist economic model with limited interaction with the US capitalist system. However, the relationship witnessed a paradigm shift after India’s economic liberalization in 1991, which opened the Indian market for foreign investment and trade. The US quickly emerged as a key economic partner, recognizing India’s growth potential and its strategic significance in Asia. Over the years, the bilateral economic partnership has expanded not only in traditional areas like trade and investment but also in emerging sectors such as digital economy, clean energy, and critical technologies. Trade constitutes the backbone of India–US economic relations. Bilateral trade in goods and services has seen exponential growth, making the US one of India’s largest trading partners. Indian exports to the US include information technology services, pharmaceuticals, textiles, gems and jewelry, and machinery, while US exports to India primarily consist of defense equipment, aircraft, machinery, medical instruments, and agricultural products. The trade volume, which was modest in the early 1990s, crossed the \$200 billion mark in recent years, underscoring the rapid expansion of commercial ties. Despite trade imbalances—India often runs a surplus with the US—the two sides have sought to address disputes through dialogue and negotiation, as reflected in the resolution of differences at the World Trade Organization (WTO) and bilateral trade forums. Foreign Direct Investment (FDI) plays an equally important __________ __________ _________ __________ ___ ________.
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