India's trade deficit with China nears $42B in H1 2024
India has achieved a trade surplus with 151 nations, including the US and Netherlands, during the first half of this year. This information was revealed by the Global Trade Research Initiative (GTRI), a prominent think tank. The same period also saw India experiencing a trade deficit with 75 countries such as China and Russia. China remained India's largest trade deficit partner in H1 2024, with an account imbalance of $41.9 billion.
India imported $50.4 billion worth of goods from China
The GTRI report highlighted that during the first half of 2024, India exported $8.5 billion to China while importing goods worth $50.4 billion, resulting in a trade deficit of $41.9 billion. This imbalance makes China India's largest trade deficit partner. "India must invest in deep manufacturing to cut dependence on import of critical industrial products from China," stated Ajay Srivastava, founder of GTRI.
GTRI report highlights India's trade performance
The GTRI report stated that between January and June 2024, India's trade surplus with 151 countries represented 55.8% of its exports and 16.5% of its imports, totaling $72.1 billion. The largest surpluses were recorded with the US ($21 billion) and Netherlands ($11.6 billion). However, a trade deficit was noted with 75 countries accounting for 44.2% of exports and 83.5% of imports, resulting in a deficit of $185.4 billion.
GTRI identifies top countries with trade deficits
The GTRI report further revealed that with 23 of the 75 countries, India's trade deficit exceeded $1 billion. These nations accounted for 32.9% of India's exports and 73.5% of its imports. The top countries contributing to the highest trade deficits (excluding China) were Russia ($31.98 billion), Iraq ($15.07 billion), Indonesia ($9.89 billion), and UAE ($9.47 billion).
GTRI advises on managing trade deficit
The GTRI advised that India should not be overly concerned about the trade deficit with countries primarily exporting crude oil, petroleum products, and coal such as Angola, Iraq, Saudi Arabia, Australia and Nigeria. However, it suggested vigilance regarding the trade deficit with four out of 23 countries that mainly export gold, silver and diamonds to India due to recent tariff reductions.
