New Delhi: India has recorded a trade deficit, the gap between imports and exports, with nine of its top 10 trading partners, including China, Russia Singapore and Korea, in 2023-24, according to official data.
The data also showed that the deficit with China, Russia, Korea and Hong Kong widened in the previous fiscal year compared to 2022-23, while the trade gap with the UAE, Saudi Arabia, Russia, Indonesia and Iraq narrowed. Went.
Trade deficit with China to widen to US$85 billion, Russia to US$57.2 billion, Korea to US$14.71 billion and Hong Kong to US$12.2 billion in 2023-24, up from US$83.2 billion, US$43 billion respectively was US$14.57 billion and US$8.38 billion. In 2022-23.
China has emerged as India's largest trading partner, overtaking the US with two-way commerce worth US$118.4 billion in 2023-24.
Bilateral trade between India and the US stood at US$ 118.28 billion in 2023-24.Washington was New Delhi's top trading partner during 2021-22 and 2022-23.
India has free trade agreements with its four top trading partners Singapore, the United Arab Emirates, Korea and Indonesia (as part of the Asian bloc).
India has a trade surplus with the US of US$36.74 billion in 2023-24. The US is one of the few countries with which India has a trade surplus. The UK, Belgium, Italy, France and Bangladesh are also in surplus.India's overall trade deficit narrowed to US$238.3 billion in the last fiscal year from US$264.9 billion in the previous fiscal.
According to trade experts, deficit is not always bad if a country is importing raw materials or intermediate products to boost manufacturing exports. However, this puts pressure on the domestic currency.
Economic think tank Global Trade Research Initiative (GTRI) said a bilateral trade deficit with a country is not a big issue unless it makes you overly dependent on vital supplies from that country. However, the increasing overall trade deficit is harmful for the economy.GTRI founder Ajay Srivastava said, "Rising trade deficit, even from imports of raw materials and intermediate products, can lead to devaluation of the country's currency as I need more foreign exchange for imports. This depreciates imports. Makes the economy more expensive, making the deficit even worse."
He said that to meet the rising deficit, the country may need to borrow more from foreign lenders, which could lead to increased foreign debt and could deplete foreign exchange reserves and signal economic instability to investors. , which may reduce foreign investment.
Srivastava said, “Reducing trade deficit requires promoting exports, reducing unnecessary imports developing domestic industries and managing currency and debt levels effectively."
The data also showed that the deficit with China, Russia, Korea and Hong Kong widened in the previous fiscal year compared to 2022-23, while the trade gap with the UAE, Saudi Arabia, Russia, Indonesia and Iraq narrowed. Went.
Trade deficit with China to widen to US$85 billion, Russia to US$57.2 billion, Korea to US$14.71 billion and Hong Kong to US$12.2 billion in 2023-24, up from US$83.2 billion, US$43 billion respectively was US$14.57 billion and US$8.38 billion. In 2022-23.
China has emerged as India's largest trading partner, overtaking the US with two-way commerce worth US$118.4 billion in 2023-24.
Bilateral trade between India and the US stood at US$ 118.28 billion in 2023-24.Washington was New Delhi's top trading partner during 2021-22 and 2022-23.
India has free trade agreements with its four top trading partners Singapore, the United Arab Emirates, Korea and Indonesia (as part of the Asian bloc).
India has a trade surplus with the US of US$36.74 billion in 2023-24. The US is one of the few countries with which India has a trade surplus. The UK, Belgium, Italy, France and Bangladesh are also in surplus.India's overall trade deficit narrowed to US$238.3 billion in the last fiscal year from US$264.9 billion in the previous fiscal.
According to trade experts, deficit is not always bad if a country is importing raw materials or intermediate products to boost manufacturing exports. However, this puts pressure on the domestic currency.
Economic think tank Global Trade Research Initiative (GTRI) said a bilateral trade deficit with a country is not a big issue unless it makes you overly dependent on vital supplies from that country. However, the increasing overall trade deficit is harmful for the economy.GTRI founder Ajay Srivastava said, "Rising trade deficit, even from imports of raw materials and intermediate products, can lead to devaluation of the country's currency as I need more foreign exchange for imports. This depreciates imports. Makes the economy more expensive, making the deficit even worse."
He said that to meet the rising deficit, the country may need to borrow more from foreign lenders, which could lead to increased foreign debt and could deplete foreign exchange reserves and signal economic instability to investors. , which may reduce foreign investment.
Srivastava said, “Reducing trade deficit requires promoting exports, reducing unnecessary imports developing domestic industries and managing currency and debt levels effectively."
