Impact of Indo–US trade on India’s economic growth: an empirical analysis

Foreign trade has played an important role in India’s economic growth in the past two decades. It has enhanced competitiveness; expanded business opportunities for domestic markets. By removing unnecessary barriers, it made easier for India and the US to export and import. Since the economic reforms introduced in the year 1991, India has radically changed its trade relations with the United States. The trade between India and the US has risen sharply in the present decade. This paper is an attempt to examine the empirical relationship between bilateral trade and economic growth of India with the US. For achieving this objective, the study covers a period of 30 years and the data are analysed through multiple regressions as the main statistical tool. The results reveal a positive impact of the bilateral trade on economic growth for both countries.