US emerges as India’s top trading partner in first half of 2024

The US was India’s largest trading partner in the first six months of the current calendar year, with total bilateral trade growing 5.3% from $59.4 billion to $62.5 billion, a report by a trade think tank said.

China had been India’s top trading partner in fiscal 2024, ahead of the US, the report said.

Overall, India’s foreign trade hit a record $849 billion in the first half of 2024, marking a 5.8% increase when compared with the same period of 2023 and driven by a 6.05% increase in exports, the Global Trade Research Initiative (GTRI) said in the report.

Industrial products led growth in India’s exports with trade worth $140.79 billion , while agriculture, meat, and processed food exports faced a slight decline. Sugar exports slumped 40.47%.

Ores, minerals, and petroleum contributed $48.6 billion, or 21.1%, while agriculture; meat, and processed food exports were $25.38 billion, representing 11%, and diamonds, gold, and related products contributed 6.8% or $15.74 billion to India’s exports.

Of the total trade with the US, exports alone rose from $37.7 billion in the year-ago period to $41.6 billion in January-June of this year, translating to a growth of 10.5%.

Exports to the United Arab Emirates (UAE) jumped 24.9% from $15.8 billion to $19.7 billion, while exports to the Netherlands grew 10.6% from $12.6 billion to $14.0 billion.

Singapore saw the highest growth, with exports surging 53.6% from $5.9 billion to $9 billion.

Exports to China during the period saw modest growth, increasing from $8.2 billion to $8.5 billion, a 3.7% increase.

Other countries in the top 10 include the United Kingdom, Saudi Arabia, Bangladesh, Germany, and Italy.

India’s top 10 import destinations

Among India’s top 10 import suppliers, China remained the most significant, with imports increasing from $46.2 billion to $50.1 billion, reflecting a growth of 8.4%.

Imports from Russia grew from $30.8 billion to $34.4 billion, an 11.65% increase. The UAE saw a significant rise in exports to India, with Indian imports growing from $23 billion to $29.2 billion, a 27% increase.

Indonesia also contributed notably, with imports increasing from $10.7 billion to $12.5 billion, up 16.8%.

In contrast, imports from the US decreased from $21.7 billion to $20.9 billion, a reduction of 3.7%.

Saudi Arabia saw a more significant decline, with imports falling from $18.5 billion to $15.9 billion, a decline of 14.1%, primarily on declining oil trade.

Other countries in the top 10 includes Singapore, Germany, South Korea, Japan, and Hong Kong.