In 2024, India's trade relations surged, with the US as its top partner. Notable was a $41.6 billion deficit with China. Exports rose by 5.41%, hitting $230.51 billion. The US and UAE were significant growth destinations. China remained vital, with a 7.7% trade increase. Service exports grew by 6.9% to $178.2 billion. Overall trade hit $849 billion, up 5.8%. Future success requires enhancing product quality and supply chain competitiveness amidst evolving global economic dynamics.
In a testament to India's expanding global trade footprint, the United States has emerged as the country's top trading partner in the first half of this year. During this period, India saw its highest trade deficit of $41.6 billion with China, as reported by the Global Trade Research Initiative (GTRI).
The analysis by GTRI reveals a positive trend in India's merchandise exports, which surged by 5.41% to reach $230.51 billion in the initial months of 2024. Notably, China stood out with a trade deficit of $41.6 billion, driven by $8.5 billion in exports to China and $50.1 billion in imports from the nation during January-June 2024.
India's export landscape showcased resilience and dynamism, with exports reaching 239 countries. Among these, 126 countries experienced growth, representing 75.3% of India's total exports. Key contributors to this growth included the USA, UAE, Netherlands, Singapore, and China. However, there were declines in exports to 98 countries, notably Italy, Belgium, Nepal, and Hong Kong.
The United States emerged as India's top export destination, with exports to the US witnessing a robust growth of 10.5%, reaching $41.6 billion in the first half of 2024. The UAE also saw a significant increase, with exports surging by 24.9% to $19.7 billion during the same period.
China remained a pivotal trading partner for India, reporting a 7.7% increase in total trade, which rose to $58.6 billion. The growth in merchandise exports was bolstered by sectors such as iron ore, pharmaceuticals, precious stones, basmati rice, chemicals, and smartphones.
On the services front, exports grew by 6.9% to $178.2 billion, while imports increased by 5.79% to $95 billion in the first half of 2024. The overall merchandise imports of the country rose by 5.47% to $345.3 billion during this period.
India's foreign trade, encompassing both merchandise and services, reached a landmark figure of $849 billion in the first half of 2024, marking a 5.8% increase from the previous year. Industrial products dominated the export sector, accounting for 61.1% of total exports, while certain segments like basmati rice, spices, and electronics showed promising growth.
In the realm of imports, industrial products led the sector, comprising 48.2% of total inbound shipments. Noteworthy increases were observed in the import of petroleum crude, machinery, boilers, turbines, and parts, signaling a healthy demand for these products.
Looking ahead, experts emphasize the importance of enhancing product quality and supply chain competitiveness to sustain and expand India's global trade relationships. As the global economic landscape evolves, maintaining policy flexibility and strategic positioning will be key for India to navigate emerging trade dynamics successfully.
Comments