India, a global economic powerhouse, has solidified its position as one of the top 20 trading nations, with total trade (merchandise exports and imports) surpassing $1.6 trillion in the financial year (FY) 2023–24. In FY 2024–25, India’s total exports reached a record $824.9 billion, marking a 6.01% growth, while imports stood at $854.8 billion. The country’s trade relationships are driven by a diverse range of commodities, from mineral fuels to pharmaceuticals, and strategic partnerships with key global players. This article delves into India’s top five trading partners in 2024, based on total trade volume (exports plus imports), highlighting major products traded, precise export and import figures, and the economic implications of these partnerships. All data is sourced from the Ministry of Commerce and Industry, the Global Trade Research Initiative (GTRI), and other reliable trade reports.

1. United States: The Cornerstone of India’s Trade

Total Trade (FY 2024–25): $131.84 billion Exports to the US: $86.51 billion Imports from the US: $45.33 billion Trade Surplus: $41.18 billion

The United States has been India’s largest trading partner for the fourth consecutive year in FY 2024–25, with bilateral trade reaching $131.84 billion, reflecting the robust economic ties between the two nations. India enjoys a significant trade surplus with the US, driven by strong exports in pharmaceuticals, technology, and gems. The ongoing negotiations for a trade agreement aim to boost two-way commerce to $500 billion by 2030, underscoring the strategic importance of this partnership.

Major Exports to the US:

Drug Formulations and Biologicals: $8.1 billion

Telecom Instruments: $6.5 billion

Precious and Semi-Precious Stones: $5.3 billion

Petroleum Products: $4.1 billion

Gold and Precious Metal Jewellery: $3.2 billion

Cotton Ready-Made Garments and Accessories: $2.8 billion

Iron and Steel Products: $2.7 billion

Major Imports from the US:

Crude Oil: $4.5 billion

Petroleum Products: $3.6 billion

Coal and Coke: $3.4 billion

Cut and Polished Diamonds: $2.6 billion

Electric Machinery: $1.4 billion

Aircraft, Spacecraft, and Parts: $1.3 billion

Gold: $1.3 billion

The US is also the largest destination for India’s services exports, with $163 billion worth of services exported by September 2024, driven by India’s IT and software services sector. This trade surplus and diversified export portfolio highlight India’s competitive edge in high-value industries.

2. China: A Complex Trade Relationship

Total Trade (FY 2024–25): $127.7 billion Exports to China: $14.25 billion Imports from China: $113.45 billion Trade Deficit: $99.2 billion

China is India’s second-largest trading partner, with total trade reaching $127.7 billion in FY 2024–25. However, the relationship is marked by a significant trade imbalance, with a trade deficit of $99.2 billion, up 17% from $85.07 billion in FY 2023–24. China’s dominance in India’s supply chains for electronics, electric vehicle (EV) batteries, solar cells, and industrial inputs underscores the dependency, which poses challenges for India’s economic self-reliance goals.

Major Exports to China:

Iron Ore: $2.5 billion

Cotton Yarns and Textiles: $1.8 billion

Spices: $1.2 billion

Vegetables and Fruits: $1.0 billion

Plastics: $0.9 billion

Marine Products: $0.7 billion

Major Imports from China:

Electronics (including Consumer Electronics and Computer Hardware): $29.5 billion (26% of total imports from China)

Machinery: $15.2 billion

Chemicals: $12.8 billion

EV Batteries and Solar Cells: $8.4 billion

Industrial Inputs: $7.6 billion

India’s exports to China contracted by 14.5% in FY 2024–25, while imports grew by 11.52%, reflecting structural challenges in manufacturing competitiveness. The Production Linked Incentive (PLI) schemes, aimed at reducing import dependency, have inadvertently fueled import growth due to reliance on Chinese components, highlighting the need for deeper industrial reforms.

3. United Arab Emirates: Energy and Jewellery Hub

Total Trade (FY 2023–24): $100.5 billion Exports to the UAE: $31.6 billion Imports from the UAE: $51.0 billion Trade Deficit: $19.4 billion

The United Arab Emirates (UAE) ranks as India’s third-largest trading partner, with total trade reaching $100.5 billion in FY 2023–24. The UAE is a critical supplier of petroleum products, ensuring India’s energy security, while India exports a diverse range of goods, including textiles and jewellery. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) has reduced tariffs on over 80% of bilateral trade, boosting export potential.

Major Exports to the UAE:

Petroleum Products: $10.2 billion

Precious Stones and Jewellery: $7.8 billion

Telecom Equipment: $3.5 billion

Cereals (including Rice): $2.1 billion

Textiles: $1.9 billion

Major Imports from the UAE:

Petroleum Crude: $25.4 billion

Petroleum Products: $10.8 billion

Precious Stones and Metals (including Gold): $8.7 billion

Aircraft and Parts: $2.5 billion

Pearls: $1.6 billion

The UAE’s role as a major oil supplier and a market for Indian exports like textiles and pharmaceuticals strengthens this partnership. However, the trade deficit reflects India’s heavy reliance on energy imports.

4. Russia: Energy-Driven Trade Growth

Total Trade (FY 2023–24): $65.7 billion Exports to Russia: $4.3 billion Imports from Russia: $61.4 billion Trade Deficit: $57.2 billion

Russia has emerged as a significant trading partner, with total trade reaching $65.7 billion in FY 2023–24, driven primarily by India’s strategic purchase of affordable Russian crude oil amid global sanctions. This shift in oil import policy has led to a high rise in imports, making Russia a key energy partner.

Major Exports to Russia:

Pharmaceuticals: $1.2 billion

Tea: $0.8 billion

Agricultural Goods: $0.7 billion

Textiles: $0.5 billion

Major Imports from Russia:

Crude Oil: $45.0 billion

Fertilizers: $8.5 billion

Defense Equipment: $4.2 billion

Coal and Coke: $2.3 billion

The trade deficit with Russia, at $57.2 billion, reflects India’s dependence on Russian oil and fertilizers. However, defense and technological collaborations supplement this economic relationship, providing strategic depth.

5. Saudi Arabia: A Key Energy Partner

Total Trade (FY 2023–24): $43.4 billion Exports to Saudi Arabia: $8.9 billion Imports from Saudi Arabia: $34.5 billion Trade Deficit: $25.6 billion

Saudi Arabia remains a vital energy partner for India, with total trade valued at $43.4 billion in FY 2023–24. Crude oil dominates imports, while India exports a range of products to meet Saudi Arabia’s consumer and industrial needs.

Major Exports to Saudi Arabia:

Rice: $2.3 billion

Meat: $1.5 billion

Machinery: $1.2 billion

Textiles: $1.0 billion

Pharmaceuticals: $0.9 billion

Major Imports from Saudi Arabia:

Crude Oil: $28.0 billion

Petroleum Products: $3.5 billion

Chemicals: $1.8 billion

The trade deficit with Saudi Arabia, at $25.6 billion, is primarily due to high crude oil imports. However, India’s exports of food products and pharmaceuticals strengthen the two-way economic relationship.

Economic Implications and Strategic Outlook

India’s trade with its top five partners—US, China, UAE, Russia, and Saudi Arabia—accounts for a significant portion of its global trade, with merchandise exports reaching $394.8 billion and imports at $854.8 billion in FY 2023–24. The country’s trade dynamics reveal both strengths and challenges:

Trade Surpluses: India enjoys trade surpluses with the US ($41.18 billion), driven by high-value exports like pharmaceuticals and jewellery.

Trade Deficits: Significant deficits with China ($99.2 billion), Russia ($57.2 billion), UAE ($19.4 billion), and Saudi Arabia ($25.6 billion) highlight reliance on energy imports and industrial inputs, particularly from China.

Key Commodities: Mineral fuels (crude and refined) and gold are India’s largest traded goods, with crude oil imports valued at $182 billion and gold imports at $55.8 billion in FY 2024–25. Refined petroleum ($74.63 billion) and diamonds ($25.9 billion) lead exports.

Strategic Initiatives: Policies like the Production Linked Incentive (PLI) scheme, Gati Shakti National Master Plan, and Foreign Trade Policy (FTP) 2023 aim to boost exports, reduce import dependency, and enhance logistics efficiency. The India-EFTA Trade and Economic Partnership Agreement (TEPA) and negotiations with the EU signal India’s commitment to expanding market access.

Conclusion

India’s trade relationships with the United States, China, UAE, Russia, and Saudi Arabia underscore its growing influence in global trade. While the US offers a robust market for India’s high-value exports, China’s dominance in industrial inputs poses challenges to self-reliance. Energy partnerships with the UAE, Russia, and Saudi Arabia ensure India’s energy security but contribute to trade deficits. To address these imbalances, India must focus on boosting exports, developing domestic industries, and leveraging trade agreements like the India-UAE CEPA and ongoing US negotiations. By integrating sustainability, technology, and skill development into its trade strategy, India can strengthen its position as a global trade powerhouse and achieve its $2 trillion export target by 2030