India's Trade Landscape: US Tops Charts While China Deficit Grows
US Emerges as India's Leading Trade Partner
In the fiscal year 2024-25, the United States has retained its position as India's largest trading partner for the fourth year in a row, with bilateral trade reaching an impressive USD 131.84 billion. Meanwhile, India's trade deficit with China has expanded to USD 99.2 billion, according to recent government statistics.
During the last fiscal year, India's exports to China saw a decline of 14.5%, dropping to USD 14.25 billion from USD 16.66 billion in 2023-24. Conversely, imports from China increased by 11.52%, totaling USD 113.45 billion compared to USD 101.73 billion the previous year.
The widening trade deficit with China represents a 17% increase from USD 85.07 billion in 2023-24.
China remains India's second-largest trading partner, with total trade amounting to USD 127.7 billion in 2024-25, up from USD 118.4 billion the year before.
Data from the commerce ministry indicates that China was India's top trading partner from 2013-14 to 2017-18 and again in 2020-21. Prior to China's rise, the UAE held the title of India's largest trading partner, but the US has taken the lead since 2021-22.
In the last fiscal year, the UAE ranked as India's third-largest trading partner, with trade valued at USD 100.5 billion.
Exports to the US increased by 11.6% in 2024-25, reaching USD 86.51 billion, compared to USD 77.52 billion in the previous year. Imports from the US also rose by 7.44%, totaling USD 45.33 billion against USD 42.2 billion in 2023-24.
India's trade surplus with the US grew to USD 41.18 billion, up from USD 35.32 billion in the previous fiscal year.
Key exports from India to the US in 2024 included drug formulations and biologicals (USD 8.1 billion), telecom instruments (USD 6.5 billion), and precious stones (USD 5.3 billion), among others. Major imports comprised crude oil (USD 4.5 billion) and electric machinery (USD 1.4 billion).
Looking ahead, the bilateral trade between India and the US is poised for growth as both nations are in discussions to finalize a trade agreement aimed at boosting two-way commerce in goods and services to USD 500 billion by 2030, up from the current USD 191 billion.