Trade dynamics with China, EU in favor of India, govt says

Trade dynamics with China and the European Union (EU) last year was in India’s favor as exports to both regions rose when compared with the previous year, according to the government.

Imports from China declined by 3% in calendar year 2023, while exports to that country and the EU bloc rose by 7.1% and 2.1%, respectively, the ministry of commerce and industry said in a statement that was reported by Indian media this week.

The statement from the ministry of commerce and industry came after a report by the United Nations Conference on Trade and Development, or UNCTAD, last month showed India’s reliance on China and the EU rose by 1.2% each during 2023.

“The current observation (by UNCTAD) of increasing India’s trade dependence may carry negative connotation. However, detailed analysis indicated trade dynamics in favor of India,” The Economic Times reported, citing the commerce ministry statement.

India’s reliance on trade with China and EU grew by 1.2% each in 2023, while its dependence on Saudi Arabia declined 0.6%, the UN trade body said in its global trade update.

The ministry said India’s trade remained resilient last year despite global challenges.

“Compared to UNCTAD’s global merchandise trade estimates of 5% decline globally, the decline in India’s merchandise exports has been less at (-) 4.8% from calendar year 2023, while the estimates of a rise in services exports has been more rapid at 9.1% from the same period as compared to 7% globally,” the report added.