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Hindi-Chini buy-buy! China surpasses US to become India’s top commercial partner

China ranked first among India's trading partners in 2020–21 and from 2013–14 to 2017–18, according to data from the commerce ministry. The UAE was the nation's top trading partner before to China. In both 2022–2023 and 2022–2023, the US constituted the largest partner.

Data from the economic research tank GTRI shows that, with $118.4 billion in two-way trade in 2023–24, China surpasses US as India’s largest trading partner. In 2023–24, the value of bilateral trade between the US and India was &118.3 billion.

Trade Dynamics: China Surpasses US as India’s Principal Trading Partner

India’s exports to China increased by 8.7% to $16.67 billion in the most recent fiscal year, according to the data. The primary industries with robust growth in exports to that nation include iron ore, plastic, linoleum, spices, cotton yarn/fabrics/madeups, handloom products, fruits and vegetables, and spices.

New Delhi’s principal trading partner in 2021–2022 and 2022–2023 was Washington.

China surpasses US
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The adjacent nation’s imports rose by 3.24 percent to $101.7 billion. In contrast, imports decreased by over 20% to USD 40.8 billion, while exports to the US decreased by 1.32 percent to USD 77.5 billion in 2023–24 compared to USD 78.54 billion in 2022–23, according to the data.

According to the Global Trade Research Initiative (GTRI), India’s trade dynamics with its top 15 trading partners experienced major changes between fiscal year 2019 and FY2024. These changes affected both exports and imports, as well as the position of trade surplus or deficit across numerous sectors.

It further stated that whereas 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.

China surpasses US
Source: Wikipedia

On the other hand, it stated that commerce with the US was expanding, with exports rising sharply from USD 52.41 billion to USD 77.52 billion, a 47.9% increase.

Additionally, US imports increased by 14.7%, from USD 35.55 billion to USD 40.78 billion. India’s trade surplus increased as a result, rising from USD 16.86 billion to USD 36.74 billion.

China ranked first among India’s trading partners in 2020–21 and from 2013–14 to 2017–18, according to data from the commerce ministry. The UAE was the nation’s top trading partner before to China. In both 2022–2023 and 2022–2023, the US constituted the largest partner.

With a trade surplus of USD 83.6 billion in 2023–24, the UAE ranked third among India’s trading partners. Following it were Singapore (USD 35.6 billion), Saudi Arabia (USD 43.4 billion), and Russia (USD 65.7 billion).

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