During the first half of this year, India had a trade surplus with 151 countries, including the US and the Netherlands, while it had a trade deficit with 75 countries, including China and Russia. According to the Global Trade Research Initiative (GTRI), India need not be concerned about the trade deficit resulting from its imports of coal and crude oil. Instead, India should concentrate on lowering its imports of industrial goods, particularly those from China, as these imports pose a threat to India’s economic sovereignty.
The report further added that between January and June 2024, India had a trade surplus with 151 countries, representing 55.8 per cent of its exports and 16.5 per cent of its imports, totalling $72.1 billion. The biggest surpluses were with the USA ($ 21 billion) and the Netherlands ($11.6 billion). Meanwhile, the trade deficit with 75 countries accounted for 44.2 per cent of its exports and 83.5 per cent of its imports, resulting in a $185.4 billion deficit.
The report further pointed out that out of 75 nations, 23 had a trade deficit of more than $1 billion; these 23 countries made up 73.5 per cent of India’s imports and 32.9 per cent of its exports.
Moreover, China at $41.88 billion, Russia at $31.98 billion, Iraq at $15.07 billion, Indonesia at $9.89 billion and the United Arab Emirates at $9.47 billion, were the top five countries with the largest trade imbalances. The remaining eighteen nations that have trade deficits greater than one billion dollars are Saudi Arabia ($9.43 billion), Switzerland ($8.46 billion), South Korea ($6.93 billion), Japan ($6.13 billion), Qatar ($5.76 billion), Hong Kong ($5.21 billion), Taiwan ($4.28 billion), Australia ($3.34 billion), Thailand ($2.60 billion), Germany ($2.10 billion), Vietnam ($2.07 billion), Malaysia ($1.49 billion), Venezuela ($1.47 billion), Peru ($1.10 billion) and Ireland ($1.10 billion).
Talking about the report, GTRI Founder Ajay Srivastava said, “The country may keep a watchful eye about the trade deficit with 4 out of the 23 countries that primarily export gold, silver and diamonds to India as tariff cuts in gold and silver in this budget from 15 per cent to 6 per cent may lead to rise in imports.”
According to the report, India’s trade deficit with China was $41.9 billion between January and June 2024, with exports of $8.5 billion and imports of $50.4 billion. China is India’s biggest trade deficit partner because of its low export and high import levels. Products that China imports more than 50 per cent of all items into India include rolling stock, glassware, toys, ceramics, fake flowers, man-made filaments, umbrellas and leather goods. It further stated that the USA has surpassed China to become India’s top merchandise trade partner in the latest trade data for FY24.
“The revision added an extra $2.8 billion in global imports, bringing India’s total imports to $678.2 billion. Of this increase, $1.4 billion came from the USA. As a result, India’s imports from the USA rose from $40.8 billion in May to $42.2 billion in August, making the USA India’s top trading partner with a total trade of $119.7 billion, surpassing China,” the report added.
(with inputs from PTI)
From: financialexpress
Financial News
