India’s trade relations span across the globe, and in recent years, the United States has been particularly beneficial for India. For several years, engaging in trade with the US has proven to be advantageous for India, with the country enjoying its best trade surplus with these nations. According to a recent report from the Global Trade Research Initiative (GTRI), in the first half of the year, India maintained a trade surplus with 151 countries, while facing trade deficits with 75 nations. This indicates that India encountered trade deficits with certain countries.
Trade Surplus with Numerous Countries
During the first half of 2024, specifically from January to June, India had a trade surplus with 151 countries, including the United States and the Netherlands. Conversely, India faced trade deficits with 75 countries, including China and Russia. The GTRI noted that there is no immediate need for India to worry about trade deficits resulting from crude oil and coal imports. However, it emphasized the necessity for India to focus on reducing imports of industrial goods, especially from nations like China, as this could pose a threat to India’s economic sovereignty.
Highest Trade Surplus with the United States
According to the report, from January to June 2024, India’s trade with 151 countries accounted for 55.8% of its exports and 16.5% of its imports. During this period, India recorded the highest trade surplus of $21 billion with the United States and $11.6 billion with the Netherlands. On the flip side, India faced trade deficits with 75 nations, which amounted to 44.2% of its exports and 83.5% of its imports, leading to a total trade deficit of $185.4 billion.
Trade Deficit Overview
| Country | Trade Surplus/Deficit | Amount (USD) |
|---|---|---|
| United States | Surplus | $21 billion |
| Netherlands | Surplus | $11.6 billion |
| Overall Deficit from 75 Countries | Deficit | $185.4 billion |
Insights from GTRI
The findings indicate the necessity of reducing dependency on specific imports and strengthening domestic production capabilities. GTRI founder Ajay Srivastava highlighted the importance of being cautious regarding countries from which India imports key commodities like gold, silver, and diamonds, especially since the budget reduced import duties from 15% to 6%. It is worth noting that crude oil constitutes the largest component of India’s import bill. Even though India has made efforts to curb imports from China by implementing anti-dumping duties on certain goods, China continues to be the largest source of imports for the country.
