In 2024-25, India exported $387.54 bn worth of services, against imports of $198.14 bn, earning all-time high surplus of $189.40 bn. This offset 2/3rd of goods trade deficit.
According to the Niti Aayog quarter trade watch report launched Monday, India’s total trade in FY 2025 was at US$1.73 trillion—exports at US$823 billion & imports US$908 billion.
Despite contraction in exports, India’s merchandise trade deficit improved in 2023-24, owing to steeper drop in imports. However, the trade deficit with China & Russia widened.
Smaller deficit this year could be down to slowing Chinese economy. In terms of volume, Indian exports to China remain roughly one-tenth of Chinese exports to India.
Indian commerce ministry data shows imports in October stood at $65.03 billion, exports were $33.57 billion. At $60 billion for April-October 2023, Chinese imports double that of Russia’s.
Modi to attend Indonesia meet just days before G20 Summit. India, whose trade deficit with bloc stood at $43.57 bn in FY23, ‘keen’ to hold at least one meeting reviewing 2009 trade pact.
Current account deficit stood at $1.3 billion in 4th quarter of fiscal year 2022-23, compared with revised deficit of $16.8 billion in preceding October-December quarter.
The concern is not that 2025’s rally was irrational, but that it may be difficult to repeat. Outlooks remain anchored to AI investment and growth without reigniting inflation.
If deal goes through, Greece will be 2nd foreign country to procure vehicle. Morocco was first; TATA Group has set up manufacturing unit there with minimum 30 percent indigenous content.
Many of you might think I got something so wrong in National Interest pieces written this year. I might disagree! But some deserve a Mea Culpa. I’d deal with the most recent this week.
COMMENTS