TRADE: US India’s biggest trading partner for fourth consecutive year, trade deficit to China rises to $99.2 billion
New Delhi| The U.S. remained India’s largest trading partner in the year 2024-25 for the fourth consecutive year. During this period, bilateral trade between the two countries amounted to $131.84 billion. However, India’s trade deficit with China increased to $99.2 billion in this period. This is confirmed by the data released on Tuesday.
India’s exports to China declined by 14.5 per cent to $14.25 billion in the previous fiscal year. In 2023-24, the figure was $16.66 billion. However, India’s imports from China increased by 11.52 percent to $113.45 billion in 2024-25, compared to $101.73 billion in 2023-24.
17% increase in trade deficit with China
The trade deficit with China rose nearly 17 percent in the previous fiscal year to US$99.2 billion, a figure of $85.07 billion in 2023-24. China was India’s second largest trading partner in 2024-25 with a two-way turnover of $127.7 billion. In 2023-24, there was a trade of $118.4 billion between the two countries.
According to Commerce Ministry data, China was India’s largest trading partner from 2013-14 to 2017-18 and in 2020-21. Before China, the United Arab Emirates was the country’s largest trading partner. The US is the largest trading partner since 2021-22. During the last fiscal year, UAE was India’s third largest trading partner with $100.5 billion.
India’s exports to the US rose by 11.6% to $86.51 billion
India’s exports to the US increased by 11.6 percent to $86.51 billion in the last fiscal year, compared to $77.52 billion in 2023-24. India’s imports from the US increased by 7.44 percent to $45.33 billion in 2024-25, compared to $42.2 billion in 2023-24. The trade surplus with the US has reached USD 41.18 billion in the last fiscal year, up from USD 35.32 billion in 2023-24.
These things are being exported and imported with America
In 2024, the major items that the US India exported include drug manufacturing and organic ($8.1 billion), telecommunications equipment ($6.5 billion), precious and semi-precious stones ($5.3 billion), petroleum products ($4.1 billion), gold and other precious metal jewellery ($3.2 billion), cotton ready-made garments including accessories ($2.8 billion), And products of iron and steel ($2.7 billion) included.
Major products of imports include crude oil ($4.5 billion), petroleum products ($3.6 billion), coal, coke ($3.4 billion), cut and polished diamonds ($2.6 billion), electric machinery ($1.4 billion), aircraft, spacecraft and parts thereof ($1.3 billion) and gold ($1.3 billion).
Bilateral trade between India and the US is expected to pick up pace in the coming years as the two countries negotiate a trade agreement. The objective is to increase two-way commerce in goods and services from the current $191 billion to $500 billion by 2030.
