During the first half of this year, i.e. January-June, America has become India’s biggest trade partner, leaving China behind. This information has been received from the data of think tank Global Trade Research Initiative i.e. GTRI. However, the matter of concern is that India’s trade deficit with China has increased very rapidly.
According to GTRI, India exported $41.6 billion to the US during January-June 2024, which is 10 percent more than $37.7 billion a year ago. After this, the total trade between the two countries increased from $59.4 billion to $62.5 billion, which is an increase of 5.3 percent.
Huge surge in imports from China!
During the first half of 2024, the country’s merchandise exports grew by 5.41 percent to $230.51 billion. During this period, India has recorded its highest trade deficit of $41.6 billion with China. India exported only $8.5 billion to China between January and June 2024, while imports from there increased from $46.2 billion to $50.1 billion.
According to the data of the first half of 2024, India exports goods to 239 countries, out of which exports have increased to 126 countries. These countries account for 75.3 percent of India’s total exports. The countries to which exports from India have increased include the US, UAE, Netherlands, Singapore and China. Exports to the UAE have seen a huge jump of about 25 percent. However, exports to 98 countries have declined during this period, which is 24.6 percent of India’s exports. Among these countries, exports to Italy, Belgium, Nepal and Hong Kong have seen the biggest decline.
Highest export of industrial products
The products that have helped India increase its exports include iron ore, pharmaceuticals, precious stones, basmati rice, chemicals and smartphones. If we look at the different sectors, according to GTRI data, industrial products led the export sector with $140.79 billion. Its share in total exports is 61.1 percent. Outbound shipments of agriculture, meat and processed foods fell by 2.58 percent to $26.06 billion. On the services front, exports grew by 6.9 percent to $178.2 billion while imports grew by 5.79 percent to $95 billion.