US emerges as India’s largest trading partner by overtaking China during the first half of FY 2024 – Gudstory

Government data shows that the number of exports and imports between India and the US has declined. However, trade between India and China declined during the same period. The final data shows that the US is India’s largest trading partner during this period.

Exports to the US during April-September 2023 have declined to US$ 38.28 billion from US$ 41.49 billion a year ago. Imports from both the countries witnessed a decline of $21.39 billion during the first six months of the current financial year, as against $25.79 billion in the same period last year.

India-China trade

Two-way trade between India and China also declined by 3.56 percent to $58.11 billion. Exports to China declined marginally to $7.74 billion during the first half of the current fiscal year from $7.84 billion in the year-ago period. Imports from China declined to $50.47 billion from $52.42 billion a year ago.

Trade experts believe that although exports and imports between India and the US are declining due to the slowdown in global demand, the growth rate will soon enter positive territory.

Despite this, he said, the trend of increasing bilateral trade with the US will continue in the coming years as New Delhi and Washington look to further strengthen economic ties.

Sanjay Budhia, Chairman of CII’s National Committee on EXIM, has earlier said that Indian exporters are demanding an early resolution for restoration of GSP benefits by the US as it will help in further boosting bilateral trade.

Mumbai-based exporter Khalid Khan said that as per the trend, the US will remain India’s largest trading partner despite global challenges.

Ludhiana-based exporter SC Ralhan said trade between New Delhi and Washington will continue to grow in the coming years.

“The US should seriously consider restoration of Generalized System of Preferences (GSP) benefits for domestic exporters as this would go a long way in promoting trade,” Ralhan said.

The US is one of the few countries with which India has a trade surplus.

The US was India’s largest trading partner in 2022-23. Bilateral trade between India and the US increased by 7.65 percent to US$128.55 billion in 2022-23 from US$119.5 billion in 2021-22. In 2020-21 it was US $ 80.51 billion.

Earlier, 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.

In 2022-23, the UAE was India’s third largest trading partner with bilateral trade of US$76.16 billion, followed by Saudi Arabia (US$52.72 billion) and Singapore (US$35.55 billion).

Bilateral trade between India and UAE stood at US$ 36.16 billion during April-September 2023.

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Updated: October 22, 2023, 04:55 PM IST