According to data from the economic think tank GTRI, China has become India’s largest trading partner, surpassing the United States. In the fiscal year 2023-24, the two-way commerce between India and China reached $118.4 billion, slightly higher than the $118.3 billion trade between India and the US. This marks a shift from the previous years, where the US held the top trading partner position for India in 2021-22 and 2022-23.
In terms of exports to China, India saw an increase of 8.7% to reach $16.67 billion in the last fiscal year. The sectors that showed significant growth in exports to China include iron ore, cotton yarn/fabrics/madeups, handloom, spices, fruits and vegetables, plastic, and linoleum. On the other hand, imports from China increased by 3.24% to $101.7 billion.
In contrast, India’s exports to the US decreased by 1.32% to $77.5 billion in 2023-24, compared to $78.54 billion in the previous fiscal year. Imports from the US also decreased by about 20% to $40.8 billion.
The Global Trade Research Initiative (GTRI) stated that India’s trade dynamics with its top 15 trading partners underwent significant changes from fiscal year 2019 to FY2024. These changes affected both exports and imports, as well as the trade surplus or deficit across various sectors. Notably, India’s exports to China experienced a marginal decline of 0.6%, while imports from China surged by 44.7%, leading to an expanding trade deficit.
Conversely, trade with the US showed growth, with exports increasing significantly by 47.9% and imports growing by 14.7%. This resulted in an expanded trade surplus for India.
In terms of India’s other trading partners, the UAE ranked as the third-largest trading partner in 2023-24 with $83.6 billion, followed by Russia ($65.7 billion), Saudi Arabia ($43.4 billion), and Singapore ($35.6 billion). China had previously been India’s top trading partner from 2013-14 until 2017-18 and also in 2020-21, with the UAE and the US occupying the top position in other years.
China’s record towards India has always been unreliable. No matter how big China’s share is in India’s trade, China’s activities are based on selling strategic weapons for war to India’s neighboring countries and infiltrating India’s borders.