US Emerges As India’s Biggest Trading Partner During H1FY24 Despite Decline In Exports, Imports

Bilateral trade between India and the US decreased by 11.3 per cent to $59.67 billion during the April-September period in 2023, compared to $67.28 billion during the same period last year.

The data revealed that the two-way trade between India and China also declined by 3.56 per cent to $58.11 billion, where exports to China stood at $7.74 billion and imports stood at $50.47 billion during the first half of the current fiscal year. ( Image Source :Getty )

The US emerged as India’s biggest trading partner in the first half of the current fiscal year, government data revealed. According to the provisional data of the commerce ministry, the bilateral trade between the two countries decreased by 11.3 per cent to $59.67 billion during the April-September period in 2023, compared to $67.28 billion during the same period last year.

Despite a decline in exports and imports and global economic uncertainties, US became the largest trading partner for India, the data showed. During the April-September period in the current fiscal year, exports to the US dipped to $38.28 billion, against $41.49 billion reported in the corresponding period a year earlier, reported PTI. Imports during the period also fell to $21.39 billion, as compared to $25.79 billion worth of imports seen during the same period in the previous fiscal year. 

The data further revealed that the two-way trade between India and China also declined by 3.56 per cent to $58.11 billion, where exports to China stood at $7.74 billion during the period and imports stood at $50.47 billion during the first half of the current fiscal year. Exports to China during the April-September period in 2022 were logged at $7.84 billion, while imports for the period stood at $52.42 billion. 

Trade experts stated that even though exports and imports between India and the US declined due to a slowdown in global demand, the growth rate for the same is expected to turn positive soon. The analysts added that despite the decline, the trend of surge in bilateral trade with the US would continue in the coming years as both the countries are trying to strengthen their economic relationship. 

Sanjay Budhia, chairman of the CII national committee on EXIM, earlier said that that a quick resolution for restoring the GSP benefits by the US to Indian exporters needs to be actively pursued as it would help enhance the bilateral trade. 

Khalid Khan, a Mumbai-based exporter, said, “Going by the trend, the US will continue to be the biggest trading partner of India despite the global challenges.”  A Ludhiana-based exporter, S C Ralhan, added that the trade between the two countries is expected to continue growing in the coming years. He said, “The US should seriously consider restoration of Generalized System of Preferences (GSP) benefits to domestic exporters as it would significantly help boost trade.”

Notably, the US is one of the few nations with which India has a trade surplus and the country was India’s biggest trading partner in the previous fiscal year. Prior to that, China remained India’s leading trade partner from 2013-14 till 2017-18, and again in 2020-21.