India’s Trade Dynamics

Export Figures:

• Forecasted to reach approximately US$776.68 billion in FY 2023–24.
• Slightly surpassed the US$776.40 billion recorded in the previous fiscal year.
• Concluded with the highest monthly merchandise exports of US$41.68 billion in March 2024.

Import Figures:

• Total goods imports decreased by 5.66 percent to US$675.44 billion.

Global Merchandise Export Ranking:

• India advanced from 19th to 17th place.
• Marginal increase in share from 1.70 percent in 2014 to 1.82 percent in 2023.
• Exported to 115 countries out of a total of 238 destinations during FY 2023-24.

Key Export Markets:

• Include the US, UAE, Netherlands, China, UK, Saudi Arabia, Singapore, Bangladesh, Germany, and Italy.
• Represent 46.5 percent of India’s export portfolio.

Diversification Strategy:

• Focus on expanding beyond traditional sectors like iron ore and agricultural commodities.
• Target sectors include electronics, pharmaceuticals, engineering products, and food items.
• Plan to introduce goods such as alcoholic beverages, prepared meals, confectioneries, jackfruit, and bananas.
• Emphasis on market research and analysis for product customization.

Trade Partners:

• China emerged as India’s largest trading partner, surpassing the US.
• Bilateral trade with China totalled US$118.4 billion in FY 2023-24.
• Bilateral trade with the US amounted to US$118.3 billion in the same period.
• India’s exports to China increased by 8.7 percent in FY24, driven by various sectors.
• Imports from China rose moderately, totalling US$101.7 billion.

(Source of Data: Ministry of Commerce and Industry, Department of Commerce)

PYQ:

[2013] The balance of payments of a country is a systematic record of:

(a) All import and export transactions of a country during a given period of time, normally a year.

(b) Goods exported from a country during a year.

(c) Economic transaction between the governments of one country to another.

(d) Capital movements from one country to another.