US trade with India will double to $1.7 billion by 2025 from $1 billion in 2018, according to a new report by US-based consultancy Edelman.
The growth comes as the US-Indian relationship has grown increasingly close.
US President Donald Trump has made it a priority to boost bilateral trade between the two countries.
“It’s going to be a big deal, we’re going to see a lot of growth, particularly in the auto industry,” said Edelman India partner Shailesh Sharma.
Edelman estimates India will account for $1 trillion of the $2 trillion trade deficit between the US and India.
Edelays estimates that India will receive $4 billion in annual subsidies from the US, and the two sides will account in 2019 for $8 billion of the bilateral trade deficit.
Edels report also found that the US will pay India $2.4 billion annually in the next 10 years in trade benefits and services.
This is an increase of over $200 million a year, Edelman said.
India is also expected to increase exports to the US by $1,200 million to $3.5 billion.
India is already the US’s largest trading partner in goods, and a large part of that trade is with the US.
According to Edelman’s latest forecast, India’s annual trade deficit with the rest of the world will grow to $2 billion by 2020.