TOP 10 TRADING PARTNERS OF INDIA
The trade is governed by the Ministry of Commerce and Industry. It accounts that the largest trading partners of India constitute 59.37% of the total trade in India, according to the old records available that include all the goods and commodities other than all the foreign investments.
The two largest traded goods in India are minerals and gold, and according to the reports of WTO, India ranks 5th in commercial services export and 6th in commercial services import with the main two destinations of the exported goods from India are EU market and the USA with the main markets of origin, i.e., China and EU.
Petroleum products, Mineral fuels including oil, Gems, precious metals, Machinery including computers, Organic, Electrical machinery, equipment, chemicals, iron, steel, and Pharmaceuticals products.
The major export products of India are petroleum products, oil, gems, minerals, machinery, equipment, chemicals, iron, steel, and more pharmaceutical products.
The major import products of India are Crude oil, gold, plastic, electronic, and telecom components.
The Top 5 import sources of India: (According to reports of 2018-19)
1.CHINA PREP
Export value- 70.32
Percentage share-13.68
2.USA
Export value 35.55
Percentage share-6.92
3.UNITED ARAB EMIRATES
Export value-29.78
Percentage share-5.79
4.SAUDI ARAB
Export value-28.48
Percentage share-5.54
5.IRAQ
Export value-22.37
Percentage share-4.35
The Top 10 export destinations of India: (According to reports of 2018-19)
1.USA
US$ Billion-52.43
Percentage share-15.88
2.UNITED ARAB EMIRATES
US$ Billion-30.12
Percentage share-9.13
3.CHINA PREP
US$ Billion-16.75
Percentage share-5.07
4.HONG KONG
US$ Billion-13.00
Percentage share-9.13
5.SINGAPORE
US$ Billion-11.57
Percentage share-3.51
In 2020, due to the pandemic situation, India exported US$ 275.5 billion in products across the globe, which is a 5.6% increase since 2016 but a decline of -14.8% from 2019.
Countries of which India is the largest trading partner :
Import- Bhutan, Guinea-Bissau, Afghanistan, Nepal, Nigeria, Mozambique, Ghana, Tanzania, Iraq, United Arab Emirates
Export- Bhutan, Nepal, Sri Lanka, Burundi, Mauritius, Tanzania
The integration of national economics has been the most important development of the last century. The economy of any country in the world cannot be improved without practicing trade. A country is never self sufficient with goods and commodities to sustain the livelihood of the population. The exchange of goods and services that is trade is significant for a country for economic development and maintaining harmony with other countries who can lend a hand of help during the crisis period. India has maintained a very fair relationship with countries all over the world in the trade sector. China with the largest population across the world followed by India has more labor-power than machinery so they play an important role in the trade sector let it be good , commodities or food products. This trade sector has improved the economic conditions of various countries.
Over the last decades, trade has completely changed the global economy. Today account one-fourth of the global population is exported. The trade policies in the economics literature focus on the source of competitive advantage and the trade transactions include both goods and services.
Why do we need trade?
1. To increase competition among countries
2. For better quality products
3. Lower the prices
4. Rise in consumer surplus
5. Provides information about the economic condition of the country
6. Globalisation of products
7. Harmony among countries
8. Satisfy the needs of the population
9. Creates job opportunities
10. Availability of a wider range of products
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