For the fourth year in a row, America continued to be India's biggest trade partner during 2024–25 at USD 131.84 billion, as per the latest government figures. While India's trade deficit with China rose to an all-time high of USD 99.2 billion in the same period.
India's exports to China declined sharply by 14.5% year-on-year to USD 14.25 billion in 2024–25 from USD 16.66 billion in the last fiscal. Imports from China, however, increased substantially—by 11.52%—to USD 113.45 billion from USD 101.73 billion in 2023–24, resulting in a significant 17% increase in the trade gap between the two countries.
In spite of the increasing deficit, China remained India's second-largest trading partner with overall bilateral trade at USD 127.7 billion in 2024–25, a rise from USD 118.4 billion in the last year.
Ministry of commerce records indicate that China was India's leading trading partner during 2013–14 and 2017–18, and again in 2020–21. Before the emergence of China, the UAE had been in the number one position. The United States has been in the number one position since 2021–22.
The UAE was India's third-largest trading partner in the previous fiscal year, with two-way trade amounting to USD 100.5 billion.
India's trade performance with the US remained on the growth path. Exports to the US rose 11.6% to USD 86.51 billion in 2024–25 from USD 77.52 billion in 2023–24. Imports also increased, rising 7.44% to USD 45.33 billion from USD 42.2 billion in the last fiscal. Consequently, India's trade surplus with the US widened to USD 41.18 billion from USD 35.32 billion a year ago.
Top Indian exports to the US in 2024 were pharmaceuticals and biologicals (USD 8.1 billion), telecommunications equipment (USD 6.5 billion), precious and semi-precious stones (USD 5.3 billion), petroleum products (USD 4.1 billion), precious jewellery and gold (USD 3.2 billion), cotton garments and accessories (USD 2.8 billion), and iron and steel products (USD 2.7 billion).
Pivotal US imports included crude (USD 4.5 billion), petroleum articles (USD 3.6 billion), coke and coal (USD 3.4 billion), cut diamonds (USD 2.6 billion), electric machinery (USD 1.4 billion), aerospace equipment in the form of aircraft and space spacecraft parts (USD 1.3 billion), and gold (USD 1.3 billion).
In the future, India-US bilateral trade is expected to grow further. The two nations are engaged in continuous negotiations for a trade pact to increase their commercial interaction considerably. The target is to increase the overall trade in goods and services to USD 500 billion by 2030 from the current figure of USD 191 billion.
Read also| Exports Rise 0.7% to $41.97 Billion in March, Total Shipments Exceed $820 Billion
Read also| US Set to Raise Tariffs on Pharmaceutical Products, Targets China First
