In the fiscal year 2024 (FY24), China has once again emerged as India’s top trading partner, surpassing the United States in bilateral trade volume, which reached a substantial $118.4 billion. This marks a significant milestone in the trade relations between the two countries.
During the same period, trade between India and the US experienced a slight decline, settling at $118.3 billion. This shift underscores the dynamic nature of global trade partnerships and the evolving economic landscape.
India’s reliance on Chinese imports, particularly in critical sectors such as telecommunications and electronics, has garnered attention and scrutiny. The disproportionate dependency on Chinese goods has prompted policymakers to explore strategies aimed at diversifying and strengthening domestic production capabilities.
To address this challenge, various measures have been proposed, including the implementation of production-linked incentives and the introduction of quality control orders. These initiatives aim to incentivize domestic manufacturing, reduce import dependency, and enhance the competitiveness of Indian industries.
In addition to the developments in Indo-China and Indo-US trade relations, the report also highlights noteworthy trade dynamics with other countries. Countries like Russia and Saudi Arabia have witnessed significant increases in trade volumes with India, signaling growing economic ties and opportunities for collaboration.
Overall, the evolving landscape of India’s trade relationships underscores the importance of strategic planning, policy interventions, and diplomatic efforts to foster sustainable and balanced trade partnerships in the global arena.
