According to data from the economic think tank GTRI, China has become India’s largest trading partner, with a total two-way commerce of USD 118.4 billion in 2023-24, narrowly surpassing the US.
During the fiscal year 2023-24, the bilateral trade between India and the US reached USD 118.3 billion. Washington held the position of New Delhi’s leading trading partner in both 2021-22 and 2022-23.
According to the data, India’s exports to China grew by 8.7 percent to USD 16.67 billion in the last fiscal year. Key sectors experiencing notable growth in exports to China include iron ore, cotton yarn/fabrics/madeups, handloom, spices, fruits and vegetables, plastic, and linoleum.
Imports from China increased by 3.24 percent to USD 101.7 billion.
Conversely, exports to the US declined by 1.32 percent to USD 77.5 billion in 2023-24 compared to USD 78.54 billion in 2022-23, while imports decreased by approximately 20 percent to USD 40.8 billion, as per the data.
According to the Global Trade Research Initiative, from fiscal year 2019 to FY2024, India’s trade dynamics with its top 15 trading partners experienced notable transformations, impacting both exports and imports as well as the trade surplus or deficit across various sectors.
The initiative noted that China saw a slight decline in exports by 0.6 percent, from USD 16.75 billion to USD 16.66 billion, while imports from China surged by 44.7 percent, rising from USD 70.32 billion to USD 101.75 billion.
“This increase in imports resulted in a widening trade deficit, escalating from USD 53.57 billion in FY2019 to USD 85.09 billion in FY2024, raising concerns about stagnant exports amidst increasing imports,” remarked GTRI Founder Ajay Srivastava.
In contrast, trade with the US demonstrated growth, with exports notably increasing by 47.9 percent from USD 52.41 billion to USD 77.52 billion.
Imports from the US also experienced growth, increasing by 14.7 percent from USD 35.55 billion to USD 40.78 billion. Consequently, India’s trade surplus expanded, rising from USD 16.86 billion to USD 36.74 billion.
As per data from the commerce ministry, China held the position of India’s top trading partner from 2013-14 to 2017-18 and also in 2020-21. Prior to China, the UAE held the title of India’s largest trading partner. The US assumed the role of the largest partner in 2021-22 and 2022-23.
In 2023-24, the UAE, with a trade volume of USD 83.6 billion, ranked as India’s third-largest trading partner. It was followed by Russia, Saudi Arabia, and Singapore.