| Abstract: | India and United States trade relations between 2021 and 2025 have recorded massive growth, strategic realignment and rising economic interdependence. Being among the two largest democracies in the world, the two countries have enhanced bilateral relations by increasing trade in goods and services, investments, and collaboration in new areas including digital technology, renewable energy, and defence production. Although there have been setbacks like tariff conflicts, regulatory obstacles and variation in trade policies, the overall trend has been favourable. The United States had always been one of the largest trading partners of India during this period and India had become a market major in the export and investment of American goods. The bilateral trade was also steadily increasing, with the help of policy discussions, including the Trade Policy Forum, and efforts to ensure supply chain resilience. The first shock caused by the COVID-19 pandemic was the impact on trade flows, which soon recovered, and both countries focus on diversification and less dependence on single-source supply chains. The major areas that propelled trade were information technology services, pharmaceuticals, textiles and export of energy especially liquefied natural gas by the United States to India. There were also strategic issues such as the increasing economic power of China which contributed to the closeness of the relationship between India and the United States in economic terms. Moreover, the development of the trade continues to be influenced by discussions that surround free trade agreements, digital trade regulations, and intellectual property rights. The India-US trade relations of 2021-2025 are characterized as the active and stable partnership with the opportunities and challenges. The sustainability of this relationship is to be based on further policy coordination, dispute mechanisms and mutual efforts to improve economic cooperation in the quickly evolving global environment. |
