In a significant shift in India's trade landscape, China has emerged as the country's largest trading partner in the 2023-24 fiscal year, overtaking the United States. According to data from the Global Trade Research Initiative (GTRI), the two-way commerce between India and China reached $118.4 billion, slightly edging past the $118.3 billion in trade between India and the US.
The US had previously been India's top trading partner in the 2021-22 and 2022-23 fiscal years. However, the latest figures show a changing dynamic, with India's exports to China growing by 8.7% to $16.67 billion, driven by increased shipments of iron ore, cotton, spices, fruits and vegetables, and other products.
On the other hand, India's imports from China increased by 3.24% to $101.7 billion, leading to a widening trade deficit that reached $85.09 billion in the 2023-24 fiscal year, up from $53.57 billion in 2019.
In contrast, India's trade relationship with the US has seen a different trajectory. Exports to the US dipped slightly by 1.32% to $77.5 billion, while imports from the US fell more significantly by 20% to $40.8 billion. This resulted in an expansion of India's trade surplus with the US, which grew from $16.86 billion to $36.74 billion.
The report by GTRI highlights the significant transformations in India's top 15 trading relationships over the past few years, with changes in both exports and imports, as well as the status of trade surpluses and deficits across various sectors.
While China has now emerged as India's largest trading partner, the US remains a crucial economic partner, with both countries maintaining strong trade ties. The report underscores the dynamic nature of India's global trade relationships and the ongoing shifts in the country's economic landscape.
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