China Emerges as India’s Largest Trading Partner in FY24,with $118.4bn Exim trade volume

Ira Singh
Khabar Khabaron Ki,12 May’24

Despite the intricacies of their geopolitical interactions and intermittent diplomatic tensions, the trade and economic ties between India and China have seen remarkable growth in recent years. In a report on bilateral commercial relations between the two nations published by the economic think tank GTRI, China has emerged as the largest trading partner with total two-way commerce of $118.4 billion, overtaking the US in the fiscal year 2023-24.

India’s exports to China have risen 8.7 per cent to $16.67 billion, while imports increased by 3.24 per cent to $101.7 billion. The main sectors which recorded healthy growth in exports to that country include iron ore, cotton yarn/ fabrics/made-ups, handloom, spices, fruits and vegetables, plastic and linoleum.

Conversely, exports to the US dipped slightly to $77.5 billion, and imports decreased by about 20 per cent to $40.8 billion, according to estimates. The bilateral trade between India and the US stood at $118.3 billion in 2023-24. Washington was the top trading partner of New Delhi during 2021-22 and 2022-23.

China was India’s top trading partner from 2013-14 till 2017-18 and in 2020-21 as well. Before China, the UAE was the country’s largest trading partner of India. During 2023-24, the UAE with $83.6 billion was the third largest trade partner. It was followed by Russia ($65.7 billion), Saudi Arabia ($43.4 billion), and Singapore ($35.6 billion).

Amidst the complexities of their bilateral dynamics, the resilience of India-China trade relations shines as a beacon of optimism for fostering sustained economic collaboration and prosperity within the region.