A recent report by the Global Trade Research Initiative (GTRI) reveals a significant shift in India’s trade landscape. For the first half of 2024, the United States has emerged as India’s largest trading partner, surpassing China.
India’s merchandise exports during this period rose by 5.41% to $230.51 billion. However, the country also recorded its highest-ever trade deficit with China, reaching $41.6 billion.
Despite the trade deficit with China, the US has seen a substantial increase in exports to India, growing by 10.5% to $41.6 billion. This surge has propelled the US to the top spot among India’s export partners.
Other key highlights of the report include:
- India’s total foreign trade (exports and imports) reached a record $849 billion in the first half of 2024.
- The services sector contributed significantly to India’s exports, growing by 6.9%.
- Sectors like iron ore, pharmaceuticals, precious stones, basmati rice, chemicals, and smartphones drove India’s merchandise exports.
- India imported goods from 239 countries, with China remaining the largest supplier.
The GTRI report underscores the growing importance of the US market for India and the country’s efforts to diversify its trade partnerships.
