India’s Trade in 2023: A Comprehensive Overview

In 2023, India’s total overseas trade value, combining merchandise imports and exports, stood at slightly over $1 trillion, approximately one-third of its $3.7 trillion economy. To put this into perspective, this figure is equivalent to the gross domestic product of the Netherlands, the 18th largest economy in the world.

But who are India’s biggest export and import partners?

The following chart by Preyash Shah breaks down the key countries from which India imported goods and to which it exported merchandise in the fiscal year 2023 (FY23). It’s important to note that this chart does not include the value of services trade. The data is sourced from the Indian Ministry of Commerce and Industry.

India’s Biggest Import Partners by Country

China is India’s largest source of imports, with nearly $100 billion worth of goods imported in FY23. This figure is almost equal to the combined value of imports from the UAE ($53 billion) and the U.S. ($50 billion).

Key imported goods from China include consumer electronics, computer hardware, and electrical machinery. Here is a detailed breakdown of India’s top import partners:

1. China: $98.5 billion
2. UAE: $53.2 billion
3. United States: $50.9 billion
4. Russia: $46.2 billion
5. Saudi Arabia: $42 billion
6. Iraq: $34.4 billion
7. Indonesia: $28.8 billion
8. Singapore: $23.6 billion
9. South Korea: $21.2 billion
10. Australia: $19 billion
11. Hong Kong: $18.3 billion
12. Qatar: $16.8 billion
13. Germany: $16.6 billion
14. Japan: $16.5 billion
15. Switzerland: $15.8 billion

Russia, ranked fourth with $46 billion, is the sole European representative in the top 10, significantly contributing to India’s crude oil imports, which account for almost one-third of the country’s massive $716 billion import bill in FY23.

India’s Biggest Export Partners by Country

India exported nearly $80 billion worth of merchandise to the U.S. in FY23, making it India’s largest overseas market by a substantial margin. Indian exports to the U.S. are almost equal in value to the combined exports to the next four largest markets: the UAE, Netherlands, China, and Bangladesh.

Here is a detailed breakdown of India’s top export partners:

1. United States: $78.5 billion
2. UAE: $31.6 billion
3. Netherlands: $21.6 billion
4. China: $15.3 billion
5. Bangladesh: $12.2 billion
6. Singapore: $12 billion
7. United Kingdom: $11.4 billion
8. Saudi Arabia: $10.7 billion
9. Germany: $10.1 billion
10. Indonesia: $10 billion
11. Brazil: $9.9 billion
12. Hong Kong: $9.9 billion
13. Turkey: $9.6 billion

Brazil, ranked 11th, is India’s sole South American export market in the top 30. India manages a surplus in trade with four of its 10 biggest export markets, including the U.S. However, China alone accounted for nearly one-third of India’s $268 billion trade deficit in FY23.

Six Years of India’s Trade Deficit

India’s trade deficit has consistently grown over the past six years, reaching $268 billion in FY23. Here’s a look at the historical trend:

• FY17: Imports – $384B, Exports – $276B, Deficit – $108B
• FY18: Imports – $466B, Exports – $304B, Deficit – $162B
• FY19: Imports – $514B, Exports – $330B, Deficit – $184B
• FY20: Imports – $475B, Exports – $313B, Deficit – $162B
• FY21: Imports – $394B, Exports – $292B, Deficit – $102B
• FY22: Imports – $613B, Exports – $422B, Deficit – $191B
• FY23: Imports – $716B, Exports – $448B, Deficit – $268B

With its large population and not as robust a manufacturing base, India relies heavily on overseas sources to meet its growing demand. This reliance, coupled with the need for crude oil imports, contributes to a trade gap that continues to widen.