American Product Advantages Versus India

Below are the top 10 goods for which United States enjoyed a higher dollar value from its exports to India after subtracting what it spent on Indian imports for those same types of products. Technically, a country’s exports minus imports is known as “net exports” which can be a positive amount (indicating a surplus) or a negative number (indicating a deficit).

1. Aircraft, spacecraft: US$1.4 billion surplus win for USA
2. Gold (unwrought): $1.2 billion
3. Miscellaneous nuts: $467.6 million
4. Phone system devices: $414.6 million
5. Coal, solid fuels made from coal: $411.3 million
6. Coal tar oils (high temperature distillation): $340.1 million
7. Paper/paperboard waste, scrap: $314.9 million
8. Petroleum oil residues: $314.6 million
9. Fertilizer mixes: $277.9 million
10. Iron or steel scrap: $247.5 million

Among these, aircraft and spacecraft (up over 30,000%), petroleum oil residues (up 46.6%) and phone system devices (up 46.2%) increased their net revenues for the US from export sales to India by the highest percentages from 2012 to 2014.

Indian Product Advantages Versus United States

Pharmaceuticals in the form of medication mixes in dosage represent the number one export for which India shows the strongest sales advantage compared to similar product exports from United States to India. In second place is refined petroleum.

1. Medication mixes in dosage: US$4.6 billion surplus win for India
2. Processed petroleum oils: $4.4 billion
3. Diamonds (unmounted/unset): $3.8 billion
4. Linens: $1.7 billion
5. Vegetable saps, extracts: $1.3 billion
6. Jewelry: $1.3 billion
7. Crustaceans (including lobsters): $1.3 billion
8. Automobile parts/accessories: $734.8 million
9. Women’s clothing (not knit or crochet): $512.3 million
10. Jerseys, pullovers (knit or crochet): $445.5 million

The fastest-growing Indian product win versus the US is crustaceans (including lobsters) posting a 130.8% surplus gain in 2014 compared to 2012.

India’s edge over American refined petroleum exports improved in value by 40.1% from 2012 to 2014.

Final Scorecard for Trade War: United States Versus India

India earned an overall $23.6 billion surplus in its international trade with America during 2014.

From a more granular perspective, the Harmonized Tariff Schedule has 97 product categories at the two-digit summary level. India held positive balances in 67 of those 97 categories (69.1%) for a $30 billion subtotal, led by the following:

1. Pharmaceuticals: $4.6 billion surplus win for India
2. Gems, precious metals: $4.2 billion
3. Mineral fuels including oil: $3.4 billion
4. Other textiles, worn clothing: $2.1 billion
5. Clothing (not knit or crochet): $1.9 billion
6. Organic chemicals: $1.5 billion
7. Knit or crochet clothing, accessories: $1.5 billion
8. Gums, resins, vegetable saps:$1.3 billion
9. Fish: $1.3 billion
10. Articles of iron or steel: $1 billion

These 10 product categories account for 76.4% of the total value of American product-specific surpluses trading with India.

The US won the remaining 30 product categories subtotaling $6.4 billion in surplus, led by the following:

1. Aircraft, spacecraft: $2.8 billion surplus win for USA
2. Optical, technical, medical apparatus: $911.5 million
3. Woodpulp: $607.8 million
4. Other chemical goods: $348.2 million
5. Fruits, nuts: $326 million
6. Fertilizers: $286.1 million
7. Inorganic chemicals: $237.1 million
8. Plastics, plastic articles: $198.1 million
9. Paper: $126.2 million
10. Vegetables: $112.6 million

The above categories represent 93.6% of the total value of Indian product-specific trade surpluses gained at India’s expense.