According to data released by the think tank Global Trade Research Initiative (GTRI), China has overtaken the US to become India’s largest trading partner in the fiscal year 2023-24 (FY24) after a gap of two years. India’s bilateral trade with China stood at $118.4 billion in FY24, with imports increasing by 3.24% to $101.7 billion and exports rising by 8.7% to $16.67 billion compared to FY23.
The US was India’s top trading partner during FY22 and FY23, after China held the position in FY21.
Between FY19 and FY24, India’s exports to China witnessed a marginal decline of 0.6%, dropping from $16.75 billion to $16.66 billion. However, imports from China surged by 44.7%, rising from $70.32 billion to $101.75 billion.
In contrast, India’s two-way trade with the US in FY24 amounted to $118.3 billion. Exports to the US dipped by 1.32% to $77.5 billion compared to the previous financial year, while imports also decreased by 20% to $40.8 billion.
Over the last five years, trade with the US showed positive growth, with exports increasing significantly by 47.9%, from $52.41 billion to $77.52 billion. Imports from the US grew by 14.7%, rising from $35.55 billion to $40.78 billion. This resulted in an expanded trade surplus for India, which grew from $16.86 billion to $36.74 billion, according to the GTRI report.
India’s trade relations with China have been under scrutiny largely due to the country’s dependence on China for critical products such as telecom and smartphone parts, pharmaceuticals, and advanced technology components, among others.
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