India’s Exports to America, Imports from China Reach All-Time High in 2024: Why in News

April 17, 2025

Significant surge in India’s exports to the United States, reaching an all-time high of $34.06 billion in the first four months of FY25 (April–July 2024)
Imports from China also hit a record $113.45 billion in FY24, highlighting India’s growing trade deficit with China
Structural dependency on China for critical imports like electronics and chemicals raised concerns amid geopolitical tensions
Recent trade data released by the Commerce Ministry underscores India’s evolving trade dynamics

UPSC Prelims:
- Test of current economic data, such as export figures ($34.06 billion to the US, $113.45 billion imports from China in FY24)
- Questions on India’s trade policy, trade deficit, and dependency on China for imports
- Potential focus on key sectors like electronics, chemicals, and pharmaceuticals
UPSC Mains:
- GS Paper III (Economy):
  - Analysis of India’s trade policy, balancing imports from China, and strategies to reduce trade deficit
  - Discussion on “Make in India” and self-reliance (Atmanirbhar Bharat) in the context of import dependency
  - Example Question: “Evaluate India’s trade relationship with the US and China, and suggest measures to address the trade imbalance with China”
- GS Paper II (International Relations):
  - Impact of India-China trade on bilateral relations and border tensions
  - Relevance of trade diversification amid global supply chain shifts
  - Example Question: “Discuss how India’s trade dependency on China affects its geopolitical strategy”
- Essay Paper:
  - Topics on economic self-reliance, globalization, or India’s role in global trade
  - Example Topic: “India’s Trade Dilemma: Balancing Growth and Self-Reliance”

India’s exports to the US surged to $34.06 billion in the first four months of FY25, a healthy surplus year in services trade with imports at $19.85 billion
Imports from China reached $113.45 billion in FY24, up 3.27% from $109.73 billion in FY23, driven by electronics, chemicals, and pharmaceuticals
Trade deficit with China widened to $101.73 billion in FY24 from $98.50 billion in FY23, a concern amid a 4.15% dip in exports to China ($16.67 billion)
Structural dependency on China increased, with imports rising from 94.57% to 113.45% of exports to China over 2020–24
Expert warnings of a “competitiveness crisis” due to reliance on Chinese imports, urging a shift toward domestic manufacturing
Organic chemicals declined by 10% in exports to China, while engineering goods exports fell to $10.82 billion in FY24 from $11.27 billion in FY23
Trade with Brazil and coffee-producing nations like Ethiopia grew, signaling diversification efforts
India’s total merchandise exports dipped to $437.06 billion in FY24 from $451.07 billion in FY23, reflecting global economic challenges