India has recorded its highest trade deficit with China at USD 41.6 billion in the first half of 2024, while the United States emerged as India's top trading partner during the same period, according to a report by the Global Trade Research Initiative (GTRI).
India's merchandise exports increased by 5.41 per cent to USD 230.51 billion between January and June 2024. The GTRI report highlighted that while the country exports goods to 239 nations, 126 of these showed positive growth, accounting for 75.3 per cent of India's total exports.
The US topped the list of export destinations, with exports rising from USD 37.7 billion in the first half of 2023 to USD 41.6 billion in the same period in 2024, a 10.5 per cent increase. The UAE also saw a significant rise in exports, growing by 24.9 per cent from USD 15.8 billion to USD 19.7 billion.
China remained India's largest import supplier, with imports increasing from USD 46.2 billion to USD 50.1 billion, contributing to a substantial trade deficit. However, the US overtook China as India's largest trading partner in early 2024, with total trade rising by 5.3 per cent to USD 62.5 billion. In comparison, trade with China grew by 7.7 per cent to USD 58.6 billion.
India's foreign trade, encompassing both merchandise and services, reached a record USD 849 billion in the first half of 2024, a 5.8 per cent increase from the same period in 2023. The growth in merchandise exports was driven by sectors such as iron ore, pharmaceuticals, precious stones, basmati rice, chemicals, and smartphones.
On the services front, exports grew by 6.9 per cent to USD 178.2 billion, while imports increased by 5.79 per cent to USD 95 billion.
The industrial products sector led India's exports, contributing USD 140.79 billion, or 61.1 per cent of the total. Although exports of agriculture, meat, and processed food dipped by 2.58 per cent to USD 26.06 billion, segments such as basmati rice and spices registered robust growth, rising by 24.3 per cent and 13.3 per cent, respectively.
In the telecom, computer, and electronics segment, smartphone exports surged from USD 7.5 billion in the first half of 2023 to USD 10 billion in the same period in 2024. The export of petroleum products remained stable at around USD 42.9 billion.
On the imports side, industrial products dominated, accounting for USD 166.54 billion, or 48.2 per cent of total imports. Imports of ores, minerals, and petroleum followed, making up 36.2 per cent, with crude petroleum imports increasing by 8.8 per cent to USD 78.3 billion.
The GTRI report also noted a significant rise in the imports of diamonds, gold, and related products, which increased by 18.75 per cent to USD 37.06 billion in the first half of 2024. Meanwhile, imports of telecom, computer, and electronics products grew by 13.42 per cent to USD 39.95 billion.
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