The United States has again emerged as India's biggest trading partner in the financial year 2022-23 in the wake of the deepening economic relations between the two countries.
The bilateral trade between India and the US for the fiscal year stood at $128.55 billion, up 7.65% from $119.5 billion in the year 2021-22, the provisional data shows. The total exports to the US surged 2.81% to $78.31 billion in 2022-23 vs $76.18 billion in 2021-22. The imports from the country to India rose 16% to $50.24 billion in FY23.
With the US, India recorded a trade surplus of $28 billion in FY23. The US had surpassed China as India's biggest trading partner at bilateral trade worth $119.42 billion in the year 2021-22, too.
India's overall trade with neighbouring China declined 1.5% to $113.83 billion in FY23 vs $115.42 billion in FY22. Exports dipped 28% to $15.32 billion in 2022-23 and imports rose 4.16% to $98.51 billion in FY23. The trade deficit stood at $83.2 billion in FY23 against $72.91 billion in FY22.
The Centre says major commodities in which India has a trade deficit with China are electronic components, computer hardware and peripherals, telecom instruments, industrial machinery for dairy and organic chemicals. Also, some of the services in which India has a trade deficit with China include construction, telecommunication, computer and information services, maintenance and repair services and other commercial services.
"The commodities exhibiting trade deficit with China constituted 86.7% of the total trade in 2014-15, which has reduced to 83.8% of the total trade with China in 2021-22. Similarly, the services exhibiting trade deficit with China contributed 30.3% to the total trade with China in 2014, which has reduced to 18.5% in 2019," the Minister of State in the Commerce & Industry Ministry, Anupriya Patel, said on April 5 in the Lok Sabha.
UAE was the third biggest trading partner of India at $76.16 billion in FY23, followed by Saudi Arabia ($52.72 billion), and Singapore ($35.55 billion).
Notably, India's new Foreign Trade Policy, 2023, was launched on March 31, 2023, and came into effect from 01.04.2023. The new Foreign Trade Policy emphasises deeper engagement with the states and districts to promote exports. "The promotion of districts as export hubs in all the districts of the country, including in the state of Odisha, is an ongoing initiative. District Export Promotion Committees have been formed in the districts for this purpose and they have identified specific products and services with export potential from the district," said Patel.
India’s merchandise exports rose 6% to a record $447 billion during the financial year 2022-23, aided by healthy growth in outbound shipments of sectors such as petroleum, pharma and chemicals and marine, Commerce and Industry Minister Piyush Goyal said last week. The country’s imports grew in double digits to $714 billion in FY23, up 16.5% as against $613 billion in FY22.
