India’s Trade Deficit in 2023-24

Source-This post on India’s Trade Deficit in 2023-24 has been created based on the article “India records trade deficit with 9 of top 10 trading partners in 2023-24” published in “The Hindu” on 27 May 2024.

Why in News?

According to the recently released official data, India recorded a trade deficit with nine of its top 10 trading partners, including China, Russia, Singapore, and Korea, in 2023-24.

India’s total trade deficit has narrowed to $238.3 billion in 2023-24. It is down from $264.9 billion the previous year.

About India’s Trade Deficit in 2023-24

1. Trade Imbalance: India registered a trade deficit with nine out of its top ten trading partners during the fiscal year 2023-24. The nations include China, Russia, Singapore, and Korea, among others.

2. Comparative Data: Compared to the fiscal year 2022-23, the trade deficit widened with China, Russia, Korea, and Hong Kong. Conversely, it narrowed with the UAE, Saudi Arabia, Russia, Indonesia, and Iraq.

3. Major Trading Partners:

a) China as Top Partner:  In 2023-24, China surpassed the U.S. to become India’s largest trading partner with $118.4 billion in bilateral trade.

b) Trade with the U.S.:  Bilateral trade was slightly lower at $118.28 billion. The U.S. was the top partner in the preceding two years.

4. Trade Agreements and Surpluses:

a) Free Trade Agreements: India maintains free trade agreements with Singapore, the UAE, Korea, and Indonesia (as part of an Asian bloc).

b) Trade Surplus: Notable surpluses were recorded with the U.S. ($36.74 billion), the U.K., Belgium, Italy, France, and Bangladesh.

UPSC Syllabus: Indian Economy