Did you know that in 2023-2024, China emerged as India’s biggest trading partner, surpassing the United States? Are you curious about the other countries India trades with and the types of goods exchanged? Or, wondering who the top trading partners of India are?
In this blog, we’ll explore the top trading partners of India, analyzing key data, players, and trade values. Additionally, we’ll look into India’s strategies for achieving balanced trade relationships and fostering cooperation.
List of Top Trading Partners of India
1. China
- Exports: $16.66 billion
- Imports: $101.75 billion
- Total Trade: $118.41 billion
In 2023-2024, China emerged as one of the top trading partners of India, exceeding the United States. The two Asian powers have extensive commercial relations, as seen by a significant recent exchange.
India’s exports to China primarily consisted of commodities like cotton, yarn, and pharmaceuticals. Meanwhile, China mainly exported finished goods to India, including telephones, computers, and electrical machinery. This trend reflects a broader pattern in global trade, where developing economies often export raw materials and import manufactured products.
Unfortunately, India continued to run a trade deficit with China, importing more goods than it exported. However, the two nations are currently in conversation, and India aims to close the deficit and establish more equitable trade relations.
2. United States
- Exports: $77.52 billion
- Imports: $40.77 billion
- Total Trade: $118.29 billion
India and the United States trade a variety of products. Both nations maintained economic interdependence and looked for ways to increase their cooperation. Consequently, India hopes to achieve more balanced trade relations by encouraging exports.
The United States remains among the top trading partners of India. The US mainly exported capital goods including aircraft, chemicals, and electronic products to India. In return, India exports finished goods such as gems and jewelry, textiles, and machinery. This trade pattern reflects a complementary relationship.
However, India faces a trade deficit with the US. The Indian government is developing programs to close this disparity and increase exports. Programs, aimed to boost manufacturing competitiveness and broaden access to international markets.
3. United Arab Emirates
- Exports: $35.63 billion
- Imports: $48.02 billion
- Total Trade: $83.65 billion
Trade between India and the United Arab Emirates (UAE) is substantial. However, there’s a good chance the UAE will sell more goods to India. India is pushing up its exports to the United Arab Emirates, particularly its agricultural products.
In addition, India exports a wide range of goods, such as textiles, jewelry, food items, petroleum products, and engineering equipment. The United Arab Emirates as among the trading partners of India imports primarily chemicals, jewels, diamonds, and petroleum from India.
Furthermore, the United Arab Emirates is a major supplier of petroleum products, crude oil, pearls, gold, and semi-precious stones. The UAE also exports aircraft, spacecraft, parts, and raw plastic materials to India.
4. Russia
- Exports: $4.26 billion
- Imports: $61.43 billion
- Total Trade: $65.69 billion
India is one of Russia’s most significant trading partners in Asia due to their long history of commerce. India mainly exports chemicals, machinery, and pharmaceuticals to Russia. These exports show how skilled and expanding India’s manufacturing sector is.
On the other hand, Russia as one of the leading trading partners of India sent crude oil, fertilizers, and diamonds to India. Oil imports are crucial for India’s energy needs, while fertilizers are essential for its agricultural sector. Diamonds are used for both industrial purposes and consumer goods.
India and Russia continue to trade amidst the geopolitical environment. However, there have been challenges for Indian exporters due to sanctions and banking restrictions. Overall, the ongoing geopolitical situation will continue to influence its trading relationships in the coming months.
5. Saudi Arabia
- Exports: $11.56 billion
- Imports: $31.81 billion
- Total Trade: $43.37 billion
In 2023–2024, Saudi Arabia emerged as a major player among the top trading partners of India, while the UAE continued to be an important partner. Saudi Arabian equities recently had a decrease after business on Monday due to losses in the REIT, insurance, and utilities sectors. In Saudi Arabia, the Tadawul All Share dropped 0.18% at the close.
Importantly, India’s exports to Saudi Arabia primarily consisted of engineered goods, organic chemicals, rice, petroleum, and electronic goods. This trend reflects India’s growing strength in manufacturing and exporting finished products.
While the trade balance between India and Saudi Arabia remained negative, with imports exceeding exports, there is a positive sign. India’s imports from Saudi Arabia have significantly decreased, suggesting that future economic relations may change to be more balanced.
6. Singapore
- Exports: $14.41 billion
- Imports: $21.20 billion
- Total Trade: $35.61 billion
India and Singapore enjoy a strong trade relationship, making Singapore one of India’s top trading partners. According to a senior diplomat at the Indian High Commission, bilateral trade between Singapore and India increased to $35.6 billion in 2022-2023, a jump of 18.2% from the previous year.
India primarily exports petroleum, textiles, chemicals, and machinery to Singapore. Conversely, Singapore as one of the trading partners of India exports electronics, refined petroleum, and pharmaceuticals to India.
Additionally, the Comprehensive Economic Cooperation Agreement (CECA) signed between the two nations on 29 June 2005 strengthens this trade relationship. This agreement streamlines customs procedures and reduces tariffs, fostering a mutually beneficial exchange of goods and services.
7. Iraq
- Exports: $3.35 billion
- Imports: $30.00 billion
- Total Trade: $33.35 billion
There was a notable increase in India’s exports to Iraq, with rice playing a big role. India’s rice exports to Iraq 7.01% compared to the previous year. There was also a substantial increase in meat exports from India to Iraq.
In addition, Iraq’s main export to India remains crude oil. Although the top trading partners of India are China and the United States, Iraq plays a key role in fulfilling India’s oil needs. Despite the growth of other commodities, crude oil remains the most common import from Iraq.
Overall, the trade relationship between India and Iraq is strengthening. India’s focus is on diversifying its exports beyond rice and meat. Also, Iraq’s potential for non-oil exports could lead to an even more well-rounded trade partnership in the future.
8. Indonesia
- Exports: $5.99 billion
- Imports: $23.41 billion
- Total Trade: $29.40 billion
India and Indonesia have had formal diplomatic relations since 1951, although they have a rich historical relationship that dates back more than two millennia. These countries have strengthened their alliance over years of defense, political, and parliamentary cooperation.
India typically exports petroleum, pharmaceuticals, textiles, and machinery. These sectors exploit India’s strong manufacturing base and ability to produce competitively. In turn, Indonesia as one of the top trading partners of India imports coal, palm oil, and chemicals. These imports fulfill domestic needs for energy and raw materials for further manufacturing.
In 2024, India and Indonesia announced a bold $50 billion goal for their respective bilateral trade over the ensuing six years. President Joko Widodo and Prime Minister Narendra Modi talked about how to strengthen collaboration in several important areas, such as the military, the economy, and maritime security.
9. Hong Kong
- Exports: $8.24 billion
- Imports: $20.45 billion
- Total Trade: $28.69 billion
India exports meat, iron and steel, machinery, coins, precious stones, pearls, precious metals, and electrical and electronic equipment to Hong Kong. Notably, pearls and precious stones accounted for a significant share. Additionally, pharmaceutical products, organic chemicals, and optical and medical apparatus featured prominently in this trade relationship.
India imports several commodities from Hong Kong, including electrical machinery, jewelry and gemstone machinery, optical and medical equipment, plastic and its byproducts, and organic chemicals. This trade flow highlights the economic connections between the two regions, even though the specific items are not available.
In summary, India’s exports to Hong Kong span diverse sectors, meanwhile, Hong Kong maintains a significant presence in trading partners of India. These trade relationships show development in both cooperation and the economy.
10. South Korea
- Exports: $6.42 billion
- Imports: $21.14 billion
- Total Trade: $27.56 billion
South Korea enjoys a strong trade relationship and is among the top trading partners of India. India primarily exported petroleum products, chemicals, and textiles to South Korea. South Korea, in turn, is a major source of electronics, machinery, and automobiles for India. This trade contributes significantly to both countries’ economies.
However, there are some imbalances. India often runs a trade deficit with South Korea, it imports more in value than it exports. Both nations are working on Free Trade Agreements (FTAs) to address these imbalances and boost bilateral trade.
An FTA could lead to tariff reductions on certain goods, making them cheaper and more accessible for consumers in both countries. This could encourage a more balanced exchange of goods and strengthen the economic ties between India and South Korea.
Final Thoughts
We explored the top trading partners of India and learned about the threads of economics, geopolitics, and the exchange of essential goods. We also discovered the energy security provided by Russia and Iraq to the export of India’s growing manufacturing strength which paints a nation striving for economic progress.
There are tons of opportunities for trading with India in the future. Will Free Trade Agreements reshape the balance of power? How will trading partners of India like China and emerging economies like Indonesia evolve?
Above all, as the nation continues to develop its economic strength, the partnerships it forms will play a critical role in shaping its future. Thus, stay tuned for India’s next exciting development that will position it as a key player in global trade. Thanks for reading!
