INDIA’S INTERNATIONAL TRADE
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- The U.S. surpassed China to become India's top trading partner in 2021-22, reflecting strengthening economic ties between the two countries.
- According to data with the Commerce Ministry, the bilateral trade between the U.S. and India stood at $119.42 billion in 2021-22 as against $80.51 billion in 2020-21. Exports to the U.S. increased to $76.11 billion in 2021-22 from $51.62 billion in the previous fiscal year, while imports rose to $43.31 billion from about $29 billion.
- India has joined a U.S.-led initiative to set up an Indo-Pacific Economic Framework (IPEF) and this move would help boost economic ties further.
India’s International Trade: Overview
- In 2020 India was the number 6 economy in the world in terms of GDP (current US$), the number 18 in total exports, the number 12 in total imports, the number 150 economy in terms of GDP per capita (current US$) and the number 40 most complex economy according to the Economic Complexity Index (ECI).
- The top exports of India are Refined Petroleum ($25.3B), Packaged Medicaments ($17.8B), Diamonds ($16B), Rice ($8.21B), and Jewellery ($7.57B), exporting mostly to United States ($49.7B), China ($18.5B), United Arab Emirates ($18.1B), Hong Kong ($9.18B), and Germany ($8.8B).
- In 2020, India was the world's biggest exporter of Diamonds ($16B), Rice ($8.21B), Crustaceans ($3.95B), Non-Retail Pure Cotton Yarn ($2.61B), and Pepper ($1.16B)
- The top imports of India are Crude Petroleum ($59B), Gold ($21.9B), Coal Briquettes ($20.9B), Diamonds ($15.8B), and Petroleum Gas ($13.8B), importing mostly from China ($64.2B), United States ($26.6B), United Arab Emirates ($22.1B), Saudi Arabia ($16.8B), and Iraq ($14.4B).
- In 2020, India was the world's biggest importer of Coal Briquettes ($20.9B), Diamonds ($15.8B), Palm Oil ($5.04B), Soybean Oil ($3.02B), and Nitrogenous Fertilizers ($2.64B).
- In February 2022 India exported $37.1B and imported $57B, resulting in a negative trade balance of $19.9B. Between February 2021 and February 2022 the exports of India have increased by $9.61B (34.9%) from $27.5B to $37.1B, while imports increased by $16.5B (40.6%) from $40.5B to $57B.
- In February 2022, the top exports of India were Petroleum Products ($6.9B), Pearl, Precs, Semiprecs Stones ($2.42B), Iron And Steel ($1.76B), Drug Formulations, Biologicals ($1.5B), and Aluminium, Products Of Aluminm ($1.05B). In February 2022 the top imports of India were Petroleum: Crude ($13.3B), Gold ($4.78B), Petroleum Products ($3.53B), Pearl, Precs, Semiprecs Stones ($3.2B), and Coal,Coke And Briquittes Etc ($2.86B).
- In February 2022, India exported mostly to United States ($6.17B), United Arab Emirates ($2.6B), Bangladesh ($1.59B), Netherlands ($1.44B), and China ($1.41B), and imported mostly from China ($8.51B), United Arab Emirates ($4.5B), United States ($4.46B), Saudi Arabia ($3.71B), and Iraq ($3.6B).
- In February 2022, the increase in India's year-by-year exports was explained primarily by an increase in exports to United States ($514M or 11.6%), South Africa ($494M or 166%), and Australia ($293M or 142%), and product exports increase in Pearl, Precs, Semiprecs Stones ($403M or 22.8%), Iron Ore ($275M or 109%), and Rice(Other Than Basmoti) ($267M or 150%). In February 2022, the increase in India's year-by-year imports was explained primarily by an increase in imports from Switzerland ($1.43B or 158%), China ($660M or 11%), and South Africa ($366M or 78.2%), and product imports increase in Gold ($2.45B or 155%), Pearl, Precs, Semiprecs Stones ($735M or 50.2%), and Vegetable Oils ($298M or 35.6%).
Steps taken to boost Exports and Trade