India is a developing market economy and it has the potential to grow rapidly due to its young population. It is the world’s fifth-largest economy by nominal GDP and the third-largest by purchasing power parity as of today. India needs strong trading partners with the trade surplus for developing compete with other developing countries. Here are the top 5 trading partners of India.
1. United State of America
According to the data of the commerce ministry, in 2018-19, the bilateral trade between the US and India stood at USD 87.95 billion. USA surpassed China and became the top trading partner of India. By the period of April-December 19-20 the bilateral trade stood at USD 68 billion.
Trade experts believe that the trend will continue in the coming years also as New Delhi and Washington are engaged in further deepening the economic ties.
China was the top trading partner before USA. India china bilateral trade is around $84.32 Billion 2019 Jan-Nov. Where we are exporting only $16.32 Billion goods so we have trade deficit of $51.68 Billion.
India exports organic Chemicals, Ores, Slag and Ash, Natural Pearls, Precious stones and Precious metals, Cotton, Including Yarns and Woven, Fabrics thereof, Fish and Crustaceans, Molluscs and Other Aquatic Invertebrates.
China exports Electric Machinery, Sound Equipment, Television Equipment and parts thereof, Nuclear Reactors, Boilers, Machinery and Mechanical Appliances and Parts, Organic Chemicals, Plastics and articles thereof, Articles of Iron and Steel.
This clearly shows that manufacturing needs to improve a lot to reduce the imports from China.
3. United Arab Emirates
United Arab Emirates is the third trading partner of India where we have exported around $24.27 billion goods and imported $25.75 billion goods in April-January 2020. Total trade stood up to $50 billion dollar till now.
We import crude oil from UAE and export diamond, jewellery and medicine.
4. Saudi Arabia
Saudi Arabia is the fourth biggest trading partner with India. Our bilateral trade stood around $34 billon USD. We export $5.5 billion USD goods and import 28.48 billion USD goods.
India’s major export items to Saudi Arabia are mineral fuels, oils and products thereof; cereals; boilers; electrical machinery and equipment; Iron and Steel; organic chemicals; meat and edible meat offal; articles of iron and steel; articles of apparel and clothing accessories etc.
India’s major import items from Saudi Arabia are mineral fuels, mineral oils and its products; organic and inorganic chemicals; plastic and its products, inorganic chemicals; fertilizers; aluminium and its articles; iron and steel; cooper and its articles; miscellaneous chemical products; raw hides and skin and leather etc.
5. Hong Kong
India was the 3rd largest export market destination for Hong Kong in 2017. India-Hong Kong trade was $34 billion in 2017. India exports $13.77 billion USD and imports $20 billion USD goods.
India exports gems and jewellery to Hong Kong and imports pears, precious stones, electrical machinery, optical and medical instruments. etc.
So those are the top 5 trading partners of India.
Other major trading partners
Switzerland, South Korea, Indonesia, Japan, Australia are other major trading partners of India. India needs to boost its manufacturing industry along with service sector to become major global contributor to world economy.