New Delhi: China has become India’s top trading partner again, surpassing the US with $118.4 billion in trade during the fiscal year 2024, according to the Global Trade Research Initiative (GTRI). This change comes after two years of the US holding the top spot. India’s imports from China rose by 3.24% to $101.7 billion, and exports to China increased by 8.7% to $16.67 billion.
Meanwhile, trade between India and the US declined slightly, totaling $118.3 billion in FY24. Indian exports to the US dropped by 1.32% to $77.5 billion, and imports from the US fell by 20% to $40.8 billion.
India heavily relies on Chinese imports for key sectors like telecommunications, pharmaceuticals, and advanced technology. The GTRI report highlighted this dependence, noting that India imported $4.2 billion worth of telecom and smartphone parts from China, making up 44% of its total imports in this category. Additionally, imports of laptops and PCs from China were $3.8 billion, which is 77.7% of India’s total in this sector.
To reduce this reliance, India has introduced several measures, such as production-linked incentive (PLI) schemes, anti-dumping duties, and quality control orders. Despite these efforts, China remains a crucial supplier, especially for lithium-ion batteries used in electric vehicles. India imported $2.2 billion worth of these batteries from China, accounting for 75% of its total imports in this category.
The report also mentioned significant changes in India’s trade with other countries. Trade with Russia has increased dramatically, with exports up by 78.3% and imports by 952%, resulting in a much larger trade deficit. In contrast, trade with Saudi Arabia grew more evenly, with exports more than doubling and imports rising at a slower pace.
