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.
US Secretary of Commerce Howard Lutnick Friday urged New Delhi to reduce its reliance on Russian defence platforms and hit out at BRICS for its de-dollarisation efforts.
Use of tariffs stems from the urgency to curb rising US trade imbalance. US trade deficit in goods widened to $1.2 trillion in calendar year 2024 from $1.06 trillion in 2023.
Senior White House officials also said that a new defence framework is close to being signed, while the US President is likely to push New Delhi to purchase more American oil.
India posted healthy growth in exports in October, even as imports grew sequentially. Donald Trump’s policy stance will have significant impact on India’s trade balance with US.
India-US trade in first 3 yrs under Biden was $122 bn, while it was $83 bn in Trump’s first term. Average trade surplus in India’s favour grew from $18 bn under Trump to $31 bn under Biden.
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.
India’s merchandise trade deficit dipped to 12-month low of $17.7 bn in Jan, while services trade surplus rose to record $16.5 bn. Services exports jumped by more than $4 bn in December.
Data reveals that most of rise in imports is on account of 'input goods' or capital goods. Import of electronics, electrical machinery & their parts is up by 37% from last year.
With recruitments under Agnipath set to rise, the Union Budget has significantly increased spending, with the Army taking nearly 87% of the total outlay.
The key to fighting a war successfully, or even launching it, is a clear objective. That’s an entirely political call. It isn’t emotional or purely military.
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