India’s trade relationships are pivotal to its economic growth, with several key partners contributing significantly to its international commerce.
United States
The United States stands as India’s largest trading partner. In the fiscal year 2023/24, bilateral trade between the two nations exceeded $118 billion, with India maintaining a trade surplus of $32 billion. This robust relationship encompasses a diverse range of goods and services, reflecting deep economic ties.
China
China is another major player in India’s trade ecosystem. In 2023, China was India’s top import source, accounting for 13.96% of India’s total imports, valued at approximately $102.25 billion. Conversely, India’s exports to China stood at $15.3 billion, highlighting a significant trade imbalance.
United Arab Emirates
The United Arab Emirates (UAE) is a crucial partner for India, particularly in the Middle East. In 2023, bilateral trade between India and the UAE amounted to $31.6 billion, representing 6.92% of India’s total exports. The Comprehensive Economic Partnership Agreement (CEPA) between the two nations, effective from May 2022, has further strengthened this relationship.
European Union
Collectively, the European Union (EU) is a significant trading partner for India. In 2023, trade in goods between India and the EU was valued at €124 billion, accounting for 12.2% of India’s total trade. The EU is the second-largest destination for Indian exports, making up 17.5% of the total, closely following the USA.
Other Notable Partners
Other key trading partners include the Netherlands, with trade valued at $18.5 billion, and Bangladesh, at $13.83 billion. These relationships underscore India’s diverse trade portfolio and its strategic economic engagements across different regions.
India’s trade partnerships are integral to its economic strategy, reflecting a balance of traditional alliances and emerging markets. As global trade dynamics evolve, these relationships will continue to play a crucial role in shaping India’s economic landscape.