US Top Trading Partner of India for 4th Straight Year in FY25; Trade Gap With China Widens to $99.2 bn

The US remained India's largest trading partner for the fourth consecutive year in 2024-25 with bilateral trade valued at $131.84 billion, while the country's trade deficit with China widened to $99.2 billion during the same period, government data showed.

In the last fiscal, India's exports to China contracted 14.5 per cent to $14.25 billion as against $16.66 billion in 2023-24. The imports, however, rose by 11.52 per cent in 2024-25 to $113.45 billion against $101.73 billion in 2023-24.

The trade deficit with China has widened by about 17 per cent to $99.2 billion in the last fiscal from $85.07 billion in 2023-24.

China continues to be the second largest trading partner of India with $127.7 billion two-way commerce in 2024-25 as compared to $118.4 billion in 2023-24.

According to the commerce ministry data, China was India's top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country's largest trading partner. The US has been the largest partner since 2021-22.

During the last fiscal, the UAE with $100.5 billion was the third largest trading partner of India.

In the last fiscal, India's exports to the US rose by 11.6 per cent to $86.51 billion as against $77.52 billion in 2023-24. The imports were up by 7.44 per cent in 2024-25 to $45.33 billion against $42.2 billion in 2023-24.

The trade surplus with America has touched $41.18 billion in the last fiscal from $35.32 billion in 2023-24.

In 2024, India's main exports to the US included 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 other precious metal jewellery ($3.2 billion), ready-made garments of cotton, including accessories ($2.8 billion), and products of iron and steel ($2.7 billion).

Imports included crude oil ($4.5 billion), petroleum products ($3.6 billion), coal, coke ($3.4 billion), cut and polished diamonds ($2.6 billion), electric machinery ($1.4 billion), aircraft, spacecraft and parts ($1.3 billion), and gold ($1.3 billion).

The bilateral trade between India and the US is expected to get a boost in the coming years as both are negotiating a trade agreement. The aim is to increase two-way commerce in goods and services to $500 billion by 2030 from $191 billion at present.