India recorded trade deficit with 9 countries out of top 10 trading partners

India recorded trade deficit with 9 countries out of top 10 trading partners

As per the official data,India has recorded a trade deficit with 9 partners out of top 10 trading partners of India including China, Russia,Singapore and Korea in 2023-24.

The trade deficit with some countries including China, Russia,Korea and Hong Kong has increased if we compare it with last year. However the trade deficit with some countries has also narrowed such as UAE, Saudi Arabia, Indonesia and Iraq.

More data:

India witnessed a trade gap with China increased by 85 billion, with Russia 57.2 billion, Korea 14.71 billion and with Hong Kong it was increased by 12.2 billion in 2023-24.

China is the largest trading partner of India in 2023-24 surpassing the US. The total value of trade with China stood at 118.4 billion. Whereas the US stood at 118.28 billion in 2023-24.

Trade surplus:

India has a trade surplus with only the US among the top 10 trading partners of India. The trade surplus with the US stood at 36.74 billion in 2023-24. There are some other countries with a trade surplus including the UK,Belgium, Italy, France and Bangladesh.

Total trade deficit:

The total trade deficit in 2023-24 stood at 238.3 billion which decreased against last year’s 264.9 billion.

Import dependency on China:

There are some critical products for which India is dependent on its neighboring countries, especially China.These products include Telecom and smartphone parts, pharma and advanced technology components.

However, there are various steps and measures taken by India to decrease its dependency on China such as production linked incentive schemes, anti dumping duties and quality control orders.

Around 44 percent of imports of Telecom and smartphone parts worth 4.2 billion came from China. The value of imports of Laptops and PCs from China was 3.8 billion marking up 77 percent of India’s imports in this sector.

Conclusion:

India has been increasingly concerned about its dependency on imports from China, particularly in strategic sectors such as pharmaceuticals, electronics, and infrastructure. This dependency poses risks to India’s national security and economic sovereignty. To address this, India has been exploring various measures including boosting domestic manufacturing, diversifying import sources, and strengthening trade ties with other countries.

Important Questions:

• Which country is the largest trading partner of India?
• What are some critical products for which India is majorly dependent in China?

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