US Becomes India's Leading Trade Partner as Trade Deficit with China Surges
US Emerges as India's Top Trade Partner
The United States has become India's leading trading partner between January and June of this year, according to the Global Trade Research Initiative (GTRI). During this timeframe, India recorded its highest trade deficit of $41.6 billion with China, highlighting critical shifts in trade dynamics.
Exports: A Mixed Bag
India's merchandise exports rose by 5.41% to $230.51 billion, driven by growth in sectors such as iron ore, pharmaceuticals, precious stones, basmati rice, chemicals, and smartphones. Major beneficiaries included the USA, UAE, Netherlands, Singapore, and China. However, exports declined in 98 countries, accounting for 24.6% of total exports, particularly affecting nations like Italy, Belgium, Nepal, and Hong Kong.
Imports and Trade Implications
China remained India's largest import supplier with imports increasing from $46.2 billion to $50.1 billion. This trend intensifies the urgency for India to bolster product quality and enhance supply chain competitiveness. As countries adopt inward-looking economic strategies, India must safeguard its policy space in areas crucial to free trade agreements and the Indo-Pacific Economic Framework, cautioned GTRI founder Ajay Srivastava.
Service Sector Performance
On the services front, exports improved by 6.9% reaching $178.2 billion, while imports experienced a smaller rise of 5.79%, totaling $95 billion.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.