TRADE DEFICIT OF INDIA -
ECONOMY
News: India in trade deficit with
nine of top 10 trading partners in 2023-24
What's in the news?
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According to the latest data of the Ministry of
Commerce and Industries, India has
recorded a trade deficit (difference between imports and exports) with 9 of its
top 10 trading partners in fiscal year (FY) 2023-24.
India’s Foreign Trade:
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In 2022, India was ranked 15 in total exports and 8 in total imports
respectively.
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According to the Commerce Ministry data, China was India's top trading partner
from 2013-14 till 2017-18 and also in 2020-21.
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Before China, the UAE was the country's largest trading partner.
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The US
was the largest partner in 2021-22 and 2022-23.
Exports (Merchandise):
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The top
exports of India are Refined Petroleum ($86.2B), Diamonds ($25.9B),
Packaged Medicaments ($19.5B), Jewellery ($12.6B), and Rice ($11.1B).
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It exports (destinations)
mostly to the United States ($82.9B), United Arab Emirates ($31.6B),
Netherlands ($17.6B), China ($15.3B), and Bangladesh ($13.8B).
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In 2022, India was the world's biggest exporter of Diamonds ($25.9B), Rice ($11.1B), etc.
Imports (Merchandise):
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The top
imports of India are Crude Petroleum ($170B), Coal Briquettes ($58.7B),
Gold ($35.8B), Petroleum Gas ($32B), and Diamonds ($26.1B).
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It imports
mostly from China ($110B), UAE ($51B) and the US ($48.5B), Saudi Arabia
($46.2B), and Russia ($40.4B).
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In 2022, India was the world's biggest importer of Coal Briquettes ($58.7B), Diamonds
($26.1B), Palm Oil ($11.1B), Mixed Mineral or Chemical Fertilizers ($7.88B),
and Nitrogenous Fertilizers ($7.37B).
Latest Trends of India’s
Foreign Trade:
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As per the data from the economic think tank GTRI, China has overtaken the US as India's
largest trading partner, with a total two-way commerce of $118.4 billion,
in the FY 2023-24.
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India's exports to China rose by 8.7% to $16.67
billion, while imports increased by 3.24% to $101.7 billion.
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On the other hand, exports to the US dipped slightly to $77.5 billion, and imports
decreased by about 20% to $40.8 billion (the two-way commerce stood at $118.3
billion).
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The UAE
with USD 83.6 billion, was the third largest trading partner of India. It was
followed by Russia ($65.7 billion), Saudi Arabia ($43.4 billion), and Singapore
($35.6 billion).
Trade Surplus:
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India maintained a trade surplus of $36.74 billion with the U.S. in 2023-24, along with
other countries like the U.K., Belgium,
Italy, France, and Bangladesh.
Trade Deficit:
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India’s trade deficit with China rose to $85 billion, Russia
to $57.2 billion, Korea to $14.71
billion and Hong Kong to $12.2
billion in 2023-24 against $83.2 billion, $43 billion, $14.57 billion and $8.38
billion in 2022-23.