California exports the most products to India, followed by New York and Illinois, according to a position paper prepared by the Indo-American Chamber of Commerce (IACC).
In absolute terms, exports to the country from the state of California peaked to $ 674 million in 2002, an increase of 6.05% over the previous year. However, the country’s share in the total exports from the State is as low as 0.73%.
Significantly, California accounts for 13.30% of the total US exports and is ranked as the second largest in exports, next only to Texas, which contributes a shade higher to the export basket at 13.76%.
Explaining the rationale of the study, the IACC President, Mr. Vinod Chandiok, said, “We are looking at ways and means for enhancing the two-way trade between India and the United States. There has to be a distinct focus on increasing US merchandises exports to India, which was at $ 4.1 billion in 2002. Our effort is to help facilitate US exports into India with a view to augmenting bilateral trade and to further enhance India’s exports to the US.”
New York and Illinois, the two states which are ranked second and third in terms of exports to the country, registered a total export volume of $546.6 million and $265.9 million, respectively in 2002.
New York contributes 5.33% of the total exports from the US, while Illinois accounts for 3.71%. India is the 16th largest export destination for New York and accounts for 1.48% of its total exports while Illinois ranks India as the 17th largest export destination. However, the country’s share in its total exports is 1.04%.
Among the 53 States in the US, only nine have exported more than $ 100 million to India during 2002. Other than California, New York and Illinois, the list includes Washington ($ 259.1 million), New Jersey ($ 148.7 million), Wisconsin ($ 124.6 million), Ohio ($ 110.3 million) and Pennsylvania ($ 100.6 million).
The IACC President said that the data has been compiled on the `Principle of Origin’ of movement. “It can happen that a multinational company based in the US having operations across the world, when setting up plant and machinery for the Indian unit, can source the equipment from the European plant of the MNC. Obviously, such imports from the third countries will not get reflected in the US imports into India,” he said.
US businesses, Mr. Chandiok noted, need to focus more on India as an export destination. “It is a question of scouting the Indian market more aggressively, identifying `product niche’ for exports and evolving a marketing strategy,” he said. (New Delhi News Bureau)