Published: 13th May, 2024
Context5. China Surpasses US in Trade with India
In the fiscal year 2023-24, China emerged as India's largest trading partner, surpassing the US, with a two-way commerce of USD118.4 billion. This slightly edged past the US, whose bilateral trade with India stood at USD118.3 billion during the same period.
Key-highlights:
- Trade Figures with China: India's exports to China rose by 8.7% to USD16.67 billion in the last fiscal year, driven by sectors like iron ore, cotton yarn/fabrics/madeups, handloom, spices, fruits and vegetables, plastic, and linoleum. However, imports from China increased by 3.24% to USD101.7 billion.
- Trade Figures with the US: In contrast, India's exports to the US dipped by 1.32% to USD77.5 billion in 2023-24, while imports decreased by about 20% to USD40.8 billion. However, imports from the US grew by 14.7%, resulting in an expanded trade surplus for India, which grew from USD16.86 billion to USD36.74 billion.
- Trends in Trade Surplus: The significant growth in imports from the US contributed to India's trade surplus expansion, which increased from USD16.86 billion to USD36.74 billion in the fiscal year 2023-24.
- Historical Context: China was India’s top trading partner from 2013-14 till 2017-18 and also in 2020-21. The UAE, followed by the US, held the position before China became the top trading partner again.
- In 2023-24, the UAE ranked as India’s third-largest trading partner, with a trade volume of USD83.6 billion.
- Other Major Trading Partners: Apart from China and the US, other major trading partners of India in 2023-24 included Russia (USD65.7 billion), Saudi Arabia (USD43.4 billion), and Singapore (USD35.6 billion).
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