Despite declining exports and imports, the US emerged as India’s biggest trading partner during the first half of the financial year 2023-24. Rising above global economic uncertainties, the US surpassed China in terms of trade with India during April-September period.
The government data shows decline in the number of exports and imports between India and the US. However, there was fall in trade between India and China during the same period. The final data shows, the US as the biggest trading partner of India during the period.
Exports to the US have come down to $38.28 billion during April-September 2023 from USD 41.49 billion a year ago. The two nations also witnessed a decline in imports to $ 21.39 billion during the first six months of the current fiscal compared to $25.79 billion in the same period last year.
Despite decline in trade between India and America, experts are hopeful of a positive trend in trade in the coming months. They believe that the growth rate will enter a positive zone soon, reported PTI.
India-China trade
The two-way trade between India and China also dropped by 3.56 per cent to $ 58.11 billion. Exports to China reduced marginally to $ 7.74 billion during the first half of the current fiscal from $7.84 billion in the year-ago period. Imports from China reduced to $ 50.47 billion from $52.42 billion a year earlier.
Despite this, the trend of increasing bilateral trade with the US will continue in the coming years as New Delhi and Washington are engaged in further strengthening the economic ties, they said.
Earlier, China was India’s top trading partner from 2013-14 till 2017-18. It was also India’s top trading partner in 2020-21. Before China, UAE used to enjoy the title of India’s top trading partner.
In 2022-23, the UAE, with USD 76.16 billion bilateral trade, was the third largest trading partner of India, followed by Saudi Arabia (USD 52.72 billion) and Singapore (USD 35.55 billion).
During April-September 2023, the bilateral trade between India and the UAE stood at USD 36.16 billion.
India-US trade
To boost the trade between India and America, restoration of GSP benefits buy the US to Indian exports can help traders, said chairman of the CII national committee on EXIM Sanjay Budhia.
Going by the trend, the US will continue to remain the biggest trading partner of India despite the global challenger, said Mumbai-based exporter Khalid Khan. Another Ludhiana-based exporter SC Ralhan said that the trade between New Delhi and Washington will continue to boosting the coming years.
“The US should seriously consider restoration of Generalized System of Preferences (GSP) benefits to domestic exporters as it would significantly help boost trade,” Ralhan noted.
America is one of the few countries with which India has a trade surplus.
The US was India’s biggest trading partner in 2022-23. The bilateral trade between India and the US rose 7.65 per cent to USD 128.55 in 2022-23 against USD 119.5 billion in 2021-22. It was USD 80.51 billion in 2020-21.
