14 May 2024
China surpassed the US as India’s top trading partner after two years. In FY2024, imports from China rose by 3.24% to $101.7 billion, and exports increased by 8.7% to $16.67 billion.
The latest report by the Global Trade Research Initiative (GTRI) shows that India’s trade with China has increased while its trade with the US has decreased. India relies heavily on China for telecom, advanced technology, and pharmaceutical imports.
India imported 44% of the smartphone and telecom parts worth $4.2 billion, 77% of laptop and PC parts worth $3.8 billion, and 75% of lithium-ion batteries for electric vehicles from China last financial year.
To reduce this dependency, India has taken steps like production-linked incentive schemes, quality control orders, and anti-dumping duties.
India's second-largest trade partner is Russia. Last year, our imports from Russia spiked by 952% to $61.44 billion, and exports increased by 78.3% to $4.26 billion. Saudi Arabia and the UK were India’s third and fourth largest trade partners, respectively.