United States of America
Population (2019): 328 million
GDP (2019): US$ 21,374,418.9 millions
World Bank “Ease of Doing Business” Rank (2019): 6
The United States (US) is the world’s largest consumer economy. Its household spending is the highest in the world, accounting for nearly a third of global household consumption. On average, US households consume nearly three times as much as any other country in the world. This makes the US market one of the most lucrative globally to reach out to.
More than just a market, the US is a major gateway to the world. The US is also home to some of the biggest global brands, including Apple, Coca-Cola, Google, General Electric, Nike, Walmart, and Walt Disney. In some industries, your company can gain credibility that is critical to becoming a global brand, by establishing presence in the US first.
The US is regularly ranked one of the most entrepreneurial economies in the world by the Global Entrepreneurship Index. There is also a wide range of funding sources – from banks and investment firms to venture capitalists and angel investors – as the US has one of the most developed financial markets.
As a recognized leader in research and development, the US registers more international patents than any other country. A robust intellectual property protection framework safeguards innovators, while leading universities and incubators across the US nurture future innovators and ideas.
Entrepreneurs can benefit from this well-developed and flourishing ecosystem of talent, funding and ideas in the US. If you are a startup, join the many startups that have set up home in the world’s top startup ecosystems of Boston, New York City, Los Angeles, Seattle, and Silicon Valley.
Good Business Environment
The US economy is recovering steadily from the 2008 recession. Economic growth in 2019 continues to be robust.
Consistently ranked among the best internationally for its overall competitiveness and ease of doing business, the US is also one of the most attractive destinations for foreign direct investment. It topped the A.T. Kearney FDI Confidence Index for the eighth consecutive year in 2020.
The US is an ideal place to do business for various reasons. These include an open US business culture that encourages free enterprise and competition, a liberal policy towards private enterprises, and a regulatory environment that is particularly conducive to starting and operating a business in the US.
USA is also known for its stable democracy with a transparent and predictable legal system and strong rule of law. All companies, regardless of national origin, compete on an even playing field in the US.
Rapidly expanding trade and commercial linkages between India and U.S. form an important component of the multi-faceted partnership between the two countries. Total bilateral trade (goods and services) between India and US increased at a CAGR of 11.03% from $20 billion in the year 2000 to $146.1 billion in the year 2019. In 2019, USA imported US$ 87,438 million worth of goods and services from India and exported US$ 58,690 million worth of goods and services resulting in India having a surplus worth US$ 28,749 million.
Starting from a modest $14 billion in 2000, the bilateral trade in goods has increased to $88.9 billion in 2019 (CAGR of 10.2%), making U.S. our largest trading partner in 2018-19 as well as in 2019-20. Of this, India exported $53 billion to US and imported $35.8 billion from US. Trade in goods during the year 2018-19 was $88.9 billion as compared to $74.9 billion during the year 2018-19, which is an increase of 18.7%. During the period January –February 2019, trade in goods grew by 15.5%to $14.87 billion from $ 12.88 billion during the corresponding period in 2018.
As per FDI statistics released by Department of Industrial Policy & Promotion, Government of India, the U.S. is the fifth largest source of foreign direct investment into India. The cumulative FDI inflows from the US during April 2000 to June 2020 amounted to $ 30.4 billion constituting 6% of the total FDI inflows into India. During the current fiscal, for the period April 2020 – June 2020, FDI from US stood at US$ 642 million and in 2019, India’s Foreign Direct Investment to USA stood at approximately US$ 5 billion.
Trade in Services: Bilateral trade in services has grown at a very fast pace since the year 2000, increasing from a mere $6 Billion in 2000 to $54.6 billion in the year 2018 (CAGR of 13.1%). Of this, India’s exports of services to the U.S. were valued at $28.8 billion and India’s imports of services from US were valued at $25.8 billion. Trade in Services during the year 2018 was $ 54.56 billion as compared to $51.9 billion during 2017, which is an increase of 5.2%.
Following aspects of the US economy make it highly lucrative for business:
The US has the largest information technology market in the world. With a vibrant culture of technological innovation and entrepreneurship, it is home to many leading hardware, software, and tech service providers.
It is also the world leader in startup ecosystems, with Boston, Chicago, Los Angeles, New York City, Seattle, and Silicon Valley consistently ranked in the world’s top ten. These ecosystems have deep resources: top universities, leading tech companies, innovative multi-national companies, and active venture capital firms. Major technology companies based in Silicon Valley include Apple, Cisco, Dropbox, Facebook, Google, Intel, Salesforce, and Twitter.
If you run a technology company, you can also work with US technology companies to help you scale regionally and globally. For example, you can co-create or integrate your products with US technology platforms to market and distribute globally, or utilise mentorship, accelerator programmes, and funding to grow more quickly.
The US is the world’s largest consumer market, valued at US$ 36.3 trillion in the 2020. Consumer Confidence in the United States averaged 86.56 points from 1952 until 2020. Consumer confidence is at an all-time high in 15 years, as more people are employed and can now afford to spend more on consumer goods.
The typical US consumer is receptive to both domestic and imported brands, given the open and broad nature of the US market. This enables you to tap the rising consumer confidence and spending to introduce your brand to the US market.
The US is home to large industries across different manufacturing sectors, including aerospace, medical, and pharmaceutical.
If your company is in the aerospace or medical devices industry, consider venturing into the US market to tap its position as the global leader in these industries in terms of market size, influence and top companies.
Pearls, pharmaceutical products, machinery, mechanical appliances, nuclear reactors, mineral fuels, vehicles, textiles, apparel, fish & organic chemicals.
|Product code||Product label||India’s exports to United States of America in 2019 (US$ Million)|
|71||Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad||9522.5|
|84||Machinery, mechanical appliances, nuclear reactors, boilers; parts thereof||4505.5|
|27||Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral||2784.9|
|87||Vehicles other than railway or tramway rolling stock, and parts and accessories thereof||2705.1|
|63||Other made-up textile articles; sets; worn clothing and worn textile articles; rags||2460.1|
|62||Articles of apparel and clothing accessories, not knitted or crocheted||2364.9|
|85||Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television||2200.8|
|61||Articles of apparel and clothing accessories, knitted or crocheted||2046.8|
|03||Fish and crustaceans, molluscs and other aquatic invertebrates||2042|
According to ITC Trade Map, India currently has an untapped export potential of US$ 27.7 billion to USA. The products with greatest export potential from India to USA are Diamonds, worked, Medicaments consisting of mixed or unmixed products, for retail sale, and Motor vehicles for the transport of persons, nes. Diamonds, worked shows the largest absolute difference between potential and actual exports in value terms, leaving room to realize additional exports worth $5.1 bn.
|Product code||Description||Export potential|
|US$ 13.2 billion|
|3004Xb||Medicaments consisting of mixed or unmixed products, for retail sale||US$ 4.6 billion
|8703XX||Motor vehicles for the transport of persons, nes||US$ 2.8 billion|
|711319||Jewellery, of precious metal, nes||US$ 2.8 billion|
|0306Xb||Shrimps & prawns, frozen||US$ 2.1 billion|
|29XXXX||Other organic chemicals||US$ 1.1 billion|
|711311||Jewellery, of silver||US$ 1.1 billion|
|8708XX||Parts & accessories of motor vehicles, nes||US$ 856.5 million|
|6403XX||Footwear, rubber/plastic soles & leather uppers, nes||792.4 million|
|630260||Toilet/kitchen linen of terry fabrics||US$ 708.5 million|
Pearls, machinery, mechanical appliances, electrical machinery, organic chemicals, Optical, photographic, mineral fuels, plastics, edible fruits & nuts, pulp of wood.
|Product code||Product label||India’s imports from United States of America in 2019 (in US$ millions)|
|Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral …||8227.3|
|71||Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad …||6,828.4|
|84||Machinery, mechanical appliances, nuclear reactors, boilers; parts thereof||4,218.8|
|85||Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television …||2,223.4|
|90||Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical …||1,475.7|
|39||Plastics and articles thereof||1,096.1|
|38||Miscellaneous chemical products||927.2|
|08||Edible fruit and nuts; peel of citrus fruit or melons||874.1|
|47||Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or …||730|
Indian Embassy in US
Chancery Address: 2107 Massachusetts Avenue, NW Washington, DC 20008
Consular Wing Address: 2536 Massachusetts Avenue, NW Washington, DC 20008
For trade related queries
Mr. Harinder Mecheri
For all other and general queries:
Mr. Anshul Sharma
California Governor’s Office
T: (916) 322-0694 / (877) 345-4633
Economics and Statistics Administration (U.S. Department of Commerce)
Economics and Statistics Administration, Room 4848, U.S. Department of Commerce, 1401 Constitution Ave., NW, Washington, DC 20230
T: (202) 482-6607
International Trade Administration
International Trade Administration, U.S. Department of Commerce, 1401 Constitution Ave NW, Washington, DC 20230
United States Patent and Trademark Office (Department of Commerce)
T: 1 800 786 9149
USA.gov (State Government Portal)
USA.gov, U.S. General Services Administration, Office of Citizen Services and Innovative Technologies, 1275 First Street, NE, Washington, DC 20417, U.S.A.