As US economy dips, why it means good business for India's exports

Surging trade deficit has had severest impact on America's GDP since 1947

The United States’ economy contracted by 0.3 per cent in the first quarter of calendar year 2025 (Q1 CY25): the first time it happened so since early 2022. As US imports surged in Q1 CY25, India may have gained a bit.

 

Private consumption and investment expenditure grew in Q1 CY25, but huge spikes in imports of goods and services led to US gross domestic product (GDP) dipping. Imports increased at a seasonally adjusted annual rate of 41.3 per cent. Further, goods’ imports grew at a rate of roughly 51 per cent.