US is top trading partner of India in FY25; trade deficit with China widens

U.S. is Top Trading Partner of India in FY 2024–25; Trade Deficit with China Widens

• According to Ministry of Commerce data, the United States remained India’s largest trading partner for the fourth consecutive year in FY 2024–25, with bilateral trade valued at $131.84 billion.

India–U.S. Trade Highlights

• Exports to U.S.: rose 11.6% to $86.51 bn (from $77.52 bn in 2023–24).
• Imports from U.S.: increased 7.44% to $45.33 bn (from $42.2 bn).
• Trade Surplus with U.S.: widened to $41.18 bn (from $35.32 bn).

Major Exports (2024–25):

• Drug formulations & biologicals – $8.1 bn
• Telecom instruments – $6.5 bn
• Precious/semi-precious stones – $5.3 bn
• Petroleum products – $4.1 bn
• Jewellery – $3.2 bn
• Ready-made garments (cotton) – $2.8 bn
• Iron & steel products – $2.7 bn

Major Imports (2024–25):

• Crude oil – $4.5 bn
• Petroleum products – $3.6 bn
• Coal & coke – $3.4 bn
• Cut & polished diamonds – $2.6 bn
• Electric machinery – $1.4 bn
• Aircraft & parts – $1.3 bn
• Gold – $1.3 bn
• India & the U.S. are negotiating a trade agreement, aiming to raise two-way commerce in goods & services to $500 bn by 2030 (currently $191 bn).

Trade with China

• Total trade: $127.7 bn (2024–25), up from $118.4 bn in 2023–24.
• Exports to China: contracted 14.5% to $14.25 bn (from $16.66 bn).
• Imports from China: rose 11.5% to $113.45 bn (from $101.73 bn).
• Trade Deficit: widened ~17% to $99.2 bn (from $85.07 bn).
• China was India’s top partner between 2013–14 to 2017–18 and again in 2020–21.

UAE

• Continued as India’s 3rd largest trading partner with $100.5 bn trade in 2024–25.

Significance

• U.S. has been India’s largest trading partner since 2021–22.
• Reflects deepening strategic & economic ties with U.S., growing concerns on trade imbalance with China, and continued importance of UAE as a major partner.
  
   Updated : Apr 16 2025 | 1:35 PM | Business Standard