According to data from the economic think tank GTRI, China surpassed the US to become India’s largest trading partner in the FY 2023–2024 with $118.4 billion in two-way trade. India and the US had $118.3 billion in bilateral trade in 2023–2024. For 2021–2022 and 2022–2023, New Delhi’s principal trading partner was Washington. 

The report states that during the most recent fiscal year, India’s exports to China increased by 8.7% to $16.67 billion. The primary industries with robust export growth to that nation include iron ore, plastic, linoleum, spices, cotton yarn/fabrics/made-ups, handloom products, fruits and vegetables, and herbs.

The neighbouring nation’s imports reached $101.7 billion, up 3.24 per cent. As per the report, imports fell by roughly 20% to $40.8 billion, while exports to the US decreased by 1.32 per cent to $77.5 billion in 2023–24 from $78.54 billion in 2022–23. According to the Global Trade Research Initiative (GTRI), India’s trade dynamics with its top 15 trading partners experienced significant changes between fiscal year 2019 and FY2024. These changes affected ex[ports and imports and the status of trade surplus or deficit across various sectors. 

China lectures India to be more open-minded

It further stated that although China’s imports increased by 44.7%, from USD 70.32 billion to USD 101.75 billion, its exports decreased marginally by 0.6%, from USD 16.75 billion to USD 16.66 billion. “This growth in imports led to an expanding trade deficit, rising from USD 53.57 billion in FY2019 to USD 85.09 billion in FY2024, highlighting concerns over stagnant exports amidst rising imports,” Ajay Srivastava, founder of GTRI, stated.

According to the report, trade with the US increased, with exports rising significantly by 47.9% from $52.41 billion to $77.52 billion. The United States’ imports increased by 14.7 per cent, from $35.55 billion to $40.78 billion. As a result, India’s trade surplus increased, going from $16.86 billion to $36.74 billion. 

Data from the Commerce Ministry shows that China was India’s principal trading partner in 2020–21 as well as in 2013–14, 2017–18, and 2020–18. The UAE was the nation’s top trading partner before China. The US constituted the largest partner in 2022–2023 and 2022–2023. With USD 83.6 billion, the UAE ranked India’s third-largest trading partner in 2023–2024. Singapore ($35.6 billion), Saudi Arabia ($43.4 billion), and Russia ($65.7 billion) came next.