As Indians navigate through various options to save money, amidst the backdrop of the “Boycott-China” movement that gained momentum following the Galwan clash in 2020, recent data reveals a notable shift in trade dynamics. After a hiatus of two years, China has reclaimed its status as India’s foremost trading partner.
For the fiscal year 2023-24, bilateral trade between India and China surged to USD 118.4 billion, surpassing the trade volume recorded with the United States, which stood marginally lower at USD 118.3 billion. This reversal marks a significant departure from previous years, where the United States had consistently held the top spot, as reported by the Global Trade Research Initiative (GTRI).
During this period, India’s exports to China witnessed a notable uptick, registering an increase of 8.7% and amounting to USD 16.67 billion. This growth spanned across various sectors, including iron ore, cotton yarn, fabrics, handloom products, spices, fruits and vegetables, plastics, and linoleum. Conversely, imports from China also surged by 3.24%, reaching USD 101.7 billion. However, this surge in imports has led to a widening trade deficit, which ballooned from USD 53.57 billion in FY2019 to USD 85.09 billion in FY2024. This substantial deficit raises concerns about the stagnation in exports amidst the surge in imports.
In contrast, trade relations between India and the United States exhibited fluctuations during the same period. While Indian exports to the US experienced a slight decline of 1.32% to USD 77.5 billion, imports from the US saw a more significant drop, plummeting by approximately 20% to USD 40.8 billion. Despite these fluctuations, the overall trade balance with the US remained favorable, boasting a substantial surplus of USD 36.74 billion, attributed to a substantial increase in exports over recent years.
Beyond China and the US, the United Arab Emirates (UAE) emerged as India’s third-largest trading partner, with bilateral trade amounting to USD 83.6 billion. Following closely, Russia and Saudi Arabia secured positions as significant trading partners, with trade volumes of USD 65.7 billion and USD 43.4 billion, respectively. Singapore also retained its significance as a trading partner, with a trade volume of USD 35.6 billion. These figures underscore the diverse and robust nature of India’s international trade relations, reflecting the nation’s engagement with a wide array of global partners.
If you like this article, then please don’t forget to like, comment and share.
