India-China Relation / China became India's number 1 trading partner by defeating America, this much business happened

Vikrant Shekhawat : May 14, 2024, 11:26 AM
India-China Relation: Even though India is continuously trying to reduce its dependence on China, trade between the two countries is continuously increasing. The special thing is that in the last financial year, India's biggest trading partner was not America but China. According to data from economic think tank GTRI, there was a trade of $ 118.4 billion between China and India in the financial year 2023-24. Which is the highest trading partner of India in the world. America is marginally behind. Bilateral trade between India and America stood at $118.3 billion in the financial year 2023-24. America was India's top trading partner during the financial years 2021-22 and 2022-23.

Increase in import-export from China

According to the report, India has exported a lot to China in the last financial year. It saw an increase of 8.7 percent and in terms of value it increased to 16.67 billion dollars. India has mainly exported iron ore, cotton yarn/clothes/madeups, handlooms, spices, fruits and vegetables, plastics and linoleum etc. to China. On the other hand, an increase of 3.24 percent was seen in India's sugar imports. In the last financial year, India imported 101.7 billion dollars.

Decrease in import-export from America

On the other hand, there has been a decline in India's exports and imports from America. According to the report, there was a decline of 1.32 percent in India's exports to America. India exported $78.54 billion to America in the financial year 2022-23, which decreased to $77.5 billion in the financial year 2023-24. On the other hand, a 20 percent decline has also been seen in imports. India's imports from America have come to $40.8 billion in the financial year 2023-24.

Imports from China increased in the last five years

The Global Trade Research Initiative (GTRI) said exports to China witnessed a slight decline of 0.6 per cent from FY 2019 to FY 2024, falling from US $ 16.75 billion to US $ 16.66 billion. On the other hand, there has been an increase of 44.7 percent in imports from China. Which increased from US$70.32 billion to US$101.75 billion in the last five years. GTRI Founder Ajay Srivastava said that due to this increase in imports, there has been a huge increase in trade deficit. It was US $ 53.57 billion in FY 2019, which will increase to US $ 85.09 billion in FY 2024.

Advantage with usa

It has been said in the report that in the last 5 years, India has benefited a lot in doing business with America. In five years, exports to America increased by 47.9 percent from $52.41 billion to $77.52 billion. Imports from America also saw an increase of 14.7 percent, which increased from $35.55 billion to $40.78 billion. Due to which India's trade surplus has increased from 16.86 billion dollars to 36.74 billion dollars.

India's top trading partners

According to Commerce Ministry data, China was India's top trading partner from 2013-14 to 2017-18 and also in 2020-21. Before China, the UAE was the country's largest trading partner. The US was the largest partner in 2021-22 and 2022-23. In FY 2023-24, UAE was India's third largest trading partner at US$83.6 billion. This was followed by Russia ($65.7 billion), Saudi Arabia ($43.4 billion) and Singapore ($35.6 billion).