China regains top spot as India's biggest trade partner, surpasses US after two years

China has reclaimed its position as India's largest trading partner for the fiscal year 2023-24, surpassing the United States in bilateral trade volume, according to data from the Global Trade Research Initiative (GTRI).

With trade reaching USD 118.4 billion, India's exports to China surged by 8.7%, totaling USD 16.67 billion, driven by diverse sectors such as iron ore, cotton yarn, fabrics, handloom products, spices, fruits and vegetables, plastics, and linoleum.

Conversely, imports from China also rose by 3.24% to USD 101.7 billion, widening the trade deficit from USD 53.57 billion in FY2019 to USD 85.09 billion in FY2024.

This significant deficit underscores concerns regarding stagnant exports amidst escalating imports.

In contrast, the trade dynamics between India and the United States witnessed fluctuations.

While Indian exports to the US slightly decreased by 1.32% to USD 77.5 billion, imports from the US experienced a more substantial decline of about 20%, falling to USD 40.8 billion.

Despite these shifts, the overall trade balance with the US showed a considerable surplus of USD 36.74 billion due to a pronounced increase in exports over the past years.